Government Announces Housing Growth Targets and New Policies

Bishop outlined six key changes under the Government's Going for Housing Growth Plan, developed with input from the Housing Expert Advisory Group, composed of urban experts and economists.

The New Zealand Government will set ambitious new housing growth targets for the country's cities and take steps to facilitate expansion both vertically and horizontally, according to Housing and Resource Management Act (RMA) Reform Minister Chris Bishop.

“Our 'Going for Housing Growth' policy tackles the root causes of unaffordable housing in New Zealand. The reform program focuses on freeing up land for development, removing unnecessary planning barriers, improving infrastructure funding and financing, and providing incentives for communities and councils to support growth,” said Mr. Bishop.

"Housing in New Zealand is too expensive because we've made it very difficult for our cities to grow. Addressing our housing crisis will boost the economy, increase productivity, help balance the government's budget, improve intergenerational equity, and reduce material hardship."

Bishop outlined six key changes under the Government's Going for Housing Growth Plan, developed with input from the Housing Expert Advisory Group, composed of urban experts and economists. These changes include:

1. **Establishment of Housing Growth Targets for Tier 1 and 2 councils

2. **New rules enabling urban fringe expansion

3. **Strengthening of intensification provisions in the National Policy Statement on Urban Development (NPS-UD)

4. **New rules requiring councils to enable mixed-use developments

5. **Abolition of minimum floor area and balcony requirements

6. **Making the Medium Density Residential Standards (MDRS) optional for councils

New Housing Growth Targets will require Tier 1 and 2 councils to "live-zone" feasible development capacity for at least 30 years of housing demand, a significant increase from the current three-year requirement. This change aims to ensure abundant development opportunities in key urban areas.

“The Government rejects the notion that cities can only grow outward or that density alone is the solution. We will make it easier to build new houses in existing urban areas and support the establishment of a ‘right to build’ on city fringes, provided infrastructure costs are covered by the development,” Bishop explained.

The Government will also abolish the Rural-Urban Boundary in Auckland and adopt similar approaches elsewhere. Enhanced long-term spatial planning will support these changes.

To ensure housing capacity is available in high-demand, well-connected locations, the NPS-UD will be strengthened. This includes requiring greater density around strategic transport corridors, simplifying definitions for "rapid transit" and "walkable catchments," and clarifying rules around "qualifying matters" that allow councils to avoid enabling intensification.

Mixed-use development will also be a priority, with new requirements for Tier 1 and 2 councils to enable small-scale activities like dairies and cafes across urban areas, and mid-scale activities like cafes, restaurants, and offices in areas subject to six-storey intensification requirements under the NPS-UD.

The Government will abolish minimum floor areas and balcony requirements, which have significantly increased apartment costs. Evidence from 2015 showed balcony size requirements in Auckland increased apartment costs by $40,000 to $70,000 per unit.

Finally, the Government will make the MDRS optional for councils. Councils currently required to implement the MDRS must hold a ratification vote to determine whether to retain, alter, or remove these standards from their urban areas. Regardless of the outcome, all councils must meet new Housing Growth Targets and other outlined changes.

“These changes are just the beginning. Further work on our infrastructure funding and financing system and incentives for growth will follow. Solving our housing crisis will lead to a more productive, wealthier, and better New Zealand,” Bishop concluded.