City zone changes may ease shortage

Changes to zoning and rules for building houses in Dunedin may alleviate a housing shortage, but some councillors fear this may not be enough to make a significant difference.

Dunedin city councillors have approved public notification of proposed changes expected to free up some land for residential development and increase the density of housing in some areas.

Some aspects of the proposal to change the district plan have not yet been disclosed and are to be made public this week.

Dunedin councillors offered some general comments during the public part of a meeting on Friday.

Cr Mike Lord said he had reservations about the council perhaps not going far enough.

"I do believe that the price of land is a problem," Cr Lord said.

"The one way you will make a difference is by having more land available and more opportunities for subdivision."

Cr Lord said he had recently visited Christchurch and housing was more affordable there.

"You can get brand new off-the-spec houses there for under $500,000."

Cr Andrew Whiley said the Dunedin City Council’s moves, such as allowing more flexibility for developers, were positive.

"Anything that can bring housing affordability back to Dunedin is very important.

"I’m conscious I would like to have seen a little bit more."

Other proposed changes include removing restrictions on who can live in family flats, providing for duplexes and allowing smaller-sized sites.

"We know there’s a housing shortage in the city and I think this does assist in relieving some of that," Cr Whiley said.

"I just hope the process can go through quickly so shovels can be in the ground."

Cr Jim O’Malley said additional ability to build houses in the city was important for meeting growth demands, but he did not believe this would result in house prices reducing.

House prices in Dunedin had grown at a rate that far exceeded population growth.

"We need to supply the extra houses to meet the growth of the city, but I predict it will have very little impact on the price of houses, because the underlying reason house prices are moving is not as simple as supply and demand."

Cr Carmen Houlahan said freeing up some land, as well as providing infrastructure to support development, should help.

She thought the existing rule about restricting occupants of a secondary dwelling to members of the same family was odd.

Cr Rachel Elder said the city was going through growing pains.

"This is a great step forward to easing those growing pains."

grant.miller@odt.co.nz