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How Auckland solved its housing crisis through rezoning

Financial Times Companies •
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A decade ago, Auckland faced a severe housing crisis driven by rapid population growth from immigration and returning New Zealanders. The city, constrained by two harbours, responded with the Auckland Unitary Plan, rezoning 75 per cent of residential land to allow taller, narrower terraced townhouses. Since 2010, Auckland's population grew from 1.3mn to 1.8mn, while housing stock rose 19.5 per cent to 618,849 units.

Median house prices, now just over NZ$1mn (US$587,000), have fallen a quarter, outperforming national trends. Rental growth was 23 per cent lower than in other New Zealand cities between 2016 and 2024. The merger of eight local councils in 2010 enabled unified planning. "Urban economists [around the world] have analysed the outcomes and found it successful in increasing the number of homes," said [PERSON_NAME], head of policy at the Planning Institute of Australia.

Estate agent [PERSON_NAME] noted, "There's now 14 town houses where there was one big house. People are pretty good with that and the cafés are full." Chief economist [PERSON_NAME] at Cotality added, "you don't hear the word shortage any more." The model demonstrates how consolidated governance and upzoning can address affordability.