WELLINGTON, July 4 (Reuters) -
New Zealand's government said it will implement regulatory changes aimed at enabling more homes to be built, including introducing housing growth targets, enabling more greenfield projects and demanding intensification around transport routes.
While house prices have dropped from their 2021 peak, housing affordability remains low in New Zealand and rental prices are currently at record levels, making it a significant political issue.
Housing in New Zealand was too expensive because regulations made it very difficult for cities to grow, Housing and Resource Management Act (RMA) Reform Minister Chris Bishop said in a statement on Thursday.
Fixing the housing crisis would improve the economy, increase productivity and help get the government’s books back in order, he said.
The changes include house building targets for New Zealand’s larger cities, rules to allow cities to expand into rural areas, intensification, new rules requiring local governments to enable mixed use development and abolishing apartment size restrictions.
Kieran McAnulty, housing spokesperson for the main opposition Labour Party, said they were open to any measure that will lead to more housing but were concerned about the impact on building standards and the loss of productive agricultural land. (Reporting by Lucy Craymer; Editing by Lincoln Feast.)
