This page aims to track the outcomes of recent supply-side reforms in New Zealand over the coming months. At this stage, the recency of the reforms, their staggered implementation, and other confounding factors (such as the COVID-19 pandemic and associated closed international borders) mean that caution should be used when making claims about policy impacts. Additionally, unlike in Minneapolis and Auckland, no causal research has been conducted. If you notice something wrong, or have a suggestion for some analysis, get in touch at Onefinaleffortblog@gmail.com.
New Zealand
Background
Following the success of the Auckland Unitary Plan, the New Zealand government implemented two major housing reforms nationally: the 2020 National Policy Statement on Urban Development which allowed for higher density around transit corridors, and the 2022 Medium Density Residential Standard (MDRS).
The National Policy Statement on Urban Development '“directs councils to remove overly restrictive planning rules and plan for growth, both up and out”. At it’s core was increasing density around transport, allowing dwellings up to six stories and easing some car parking restrictions. It came into effect in August 2020, but it gave city governments several months to implement the new reforms. The timeline for city governments to comply can be found here. A good summary of reforms can be found here.
The Medium Density Residential Standard allows the building of 3 dwellings, up to 3 stories on most blocks. It also sped up some of the implementation of the National Policy Statement. Cities had to notify the federal government about their plans to implement the MDRS by the 20th of August, 2022. The policy was controversial in many areas, with the Christchurch City Council voting against implementation, and the Auckland City Council attempting to impose ‘special character protections’ to prevent development in some areas.
These policies split New Zealand’s cities into 3 categories: ‘tier 1’, ‘tier 2’, and ‘tier 3’. Tier 1 cities include Auckland, Hamilton, Tauranga, Wellington, and Christchurch. This page will only track the outcomes in these tier 1 cities - except for Auckland which has its’ own page located here.
Although the implementation timelines differ across cities, and implementation itself is messy, for simplicity, this page will consider August 2020 as the pre-reform baseline. However, caution should be used in making strong claims regarding policy impacts over the immediate term until all reforms have been properly implemented.
The Impact on Supply
(Please note that this section is in development, and that it is currently impossible to ascribe the impacts of specific reforms to changes in supply).
The Impact on Rents and Prices
(Please note this section and that it is currently impossible to ascribe the impacts of specific reforms to changes in rents. Analysis on the effects on house prices is coming soon).
