New Zealand Zoning Reform Targets Housing Production

New Zealand plans to ease zoning restrictions to allow for more housing development, reports Charlotte Graham-McClay for the Associated Press. New legislation requires cities to free up land for development and accommodate projected growth for the next 30 years, rather than the three years required by prior regulations.

The new rules prevent local councils from imposing urban boundaries or banning mixed-use development. They will also prohibit local councils from mandating balconies, minimum sizes, and other requirements that make development more expensive.

Housing costs in the country have soared in the last two decades and remain much higher than in 2019. New Zealand renters spend a higher percentage of their income on rent than residents of any other country, according to the Organization for Economic Cooperation and Development.

Auckland, New Zealand’s largest city, saw success with a similar policy introduced in 2016, which led to a significant boost in construction and lower housing costs.

Some legislators opposed the change, saying that urban growth won’t be sustainable without additional government investment in infrastructure, and that sprawl could destroy valuable agricultural land.