In a bid to combat the pressing housing shortage in New Zealand, Housing Minister Chris Bishop has revealed a comprehensive six-point plan aimed at boosting housing development across the nation. The proposed changes seek to simplify regulations, free up land, and incentivize construction, with a focus on creating more affordable housing options.

The changes are:

1. The establishment of Housing Growth Targets for Tier 1 and 2 councils
2. New rules requiring cities to be allowed to expand outwards at the urban fringe
3. A strengthening of the intensification provisions in the National Policy Statement on Urban Development (NPS-UD).
4. New rules require councils to enable mixed-use developments in our cities.
5. The abolition of minimum floor area and balcony requirements
6. New provisions making the MDRS optional for councils

One of the key changes involves setting ambitious housing growth targets for major cities, requiring them to plan for 30 years’ worth of housing demand instead of the current three years. This move is expected to unlock a substantial amount of land for development in urban areas.

Additionally, cities will be allowed to expand outward into their fringes, challenging the traditional view that growth can only occur within existing city limits. This is coupled with an emphasis on increasing density along major transport routes and simplifying regulations to encourage mixed-use developments that combine residential and commercial spaces.

The government also plans to remove minimum floor area and balcony requirements for apartments, a move aimed at reducing construction costs and making smaller, more affordable apartments available. Furthermore, the controversial Medium Density Residential Standards, which mandated allowing up to three homes on a single lot, will become optional for councils to adopt.

The initiative has garnered support from Local Government New Zealand, the organization representing councils, although concerns remain about the financial burden on local governments to support the required infrastructure development. The Labour Party has echoed this concern, emphasizing the need for government funding to enable councils to expand and build necessary infrastructure like roads and services.

While the plan has been generally well-received, concerns have also been raised about the environmental impact of outward expansion. Thomas Nash, a Greater Wellington regional councilor, stressed the importance of factoring in environmental costs when considering greenfield developments on city fringes, suggesting that inner-city density might be a more sustainable and economically sound approach.

Overall, the government’s plan represents a significant step towards addressing the housing crisis in New Zealand. The changes aim to streamline the planning and construction process, create more housing options, and ultimately make housing more affordable for New Zealanders. However, the success of the plan will depend on the government’s ability to address concerns about infrastructure funding and environmental impact, as well as the willingness of councils to embrace the proposed changes.