Co-operation housing shortage solution

Lawrence Yule.
Lawrence Yule.
Addressing housing shortages is about much more than ''cutting through the red tape'', writes Lawrence Yule, the president of Local Government New Zealand.

Housing affordability has rarely been out of the headlines over the past 12 months.

The international Economist magazine found New Zealand house prices were among the most overvalued in the world, house prices in Auckland continued to hit record highs and, in November, the New Zealand Institute of Economic Research (NZIER) warned that the overvalued Auckland housing market and slowing global growth are key risks to New Zealand's economic outlook.

One prong of the Government's approach to tackling this issue is a new Productivity Commission inquiry which focuses on what influences land supply for housing.

The Government has asked the commission to ''examine the bylaws, processes and practices of local planning and development systems across New Zealand's faster-growing urban areas''.

This will, most likely, reignite debate about the role of local government in addressing housing affordability.

Local Government New Zealand (LGNZ) strongly supports identifying solutions to address housing affordability and welcomes the commission looking at how land planning systems can better benefit cities and how local authorities make land available for housing.

However, when considering housing supply and affordability, it is important to recognise the many factors at play.

The priority cannot continue to be simply on how to provide more housing in Auckland or other areas deemed unaffordable.

It must be on how we create and support vibrant economies and communities in the many areas of New Zealand with good land supply.

If we can do this, migrants will look beyond a handful of metropolitan areas, and skilled Kiwis will have confidence to move from areas of housing pressure to other regional centres to buy homes, raise families and enjoy productive careers.

We need to find ways to develop our regional centres into environments which offer opportunities in education, employment and business.

We see a real opportunity to develop a shared national strategy to strengthen regional economies to make other areas in New Zealand attractive places to live.

And, even in areas deemed to be unaffordable, overall, land shortages are not the issue.

Research commissioned by LGNZ has found that, apart from a small number of metropolitan areas, residential land supply shortages are not a universal problem in New Zealand.

Major issues impacting on housing supply and affordability include timing of private sector land sales, release of land by developers and how long developers take to build once land has been zoned.

Banking policy, construction costs, and the high cost of building materials - highlighted in the Productivity's Commission last report in 2012 - also play a part.

Another recent NZIER report also found demand for bespoke housing, poor project management and slow uptake of technology were factors in slowing productivity in the building sector.

Additionally, council roles in planning are not always clear-cut.

Changing zoning plans is complex and frequently subject to litigation as decisions are often challenged.

The time this process takes is a significant issue that influences the very first step in the process of making land available for housing and local government is calling for legislation to be simplified.

The other significant issue for local government is funding infrastructure for high-growth areas where existing communities cannot always cover the costs of future population growth.

Local government will be determining how it can work with the Government on changes to the Resource Management Act (RMA) - and providing input on ways to make RMA processes more efficient and accessible for the public.

That includes reviewing Housing Accord processes that streamline and better focus public participation, template formats for consistency, plan provisions with greater clarity around expected outcomes and more accessible e-planning tools.

Ten local authorities including Queenstown Lakes District Council and Christchurch City Council are now listed on the Housing Accords and Special Housing Areas Act schedule.

This means these areas can enter a housing accord with the Government.

These have recognised the benefits of a truncated approach for residential rezoning and consenting.

There is opportunity to examine applying these provisions more widely to the RMA, beyond residential development in particular locations.

Statistics from the Ministry for the Environment show timeliness of consenting has never been better.

Of consents, 97% are processed within statutory time frames.

Addressing housing shortages is about much more than ''cutting through the red tape''.

LGNZ strongly advocates the most effective strategy is a co-ordinated effort between local and central government to drive regional development and revitalise regional economies.

With a joined-up approach from local and central government, we could achieve much more.

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