The Queenstown Lakes District Council has commended a recent report from the Productivity Commission which addresses factors affecting housing affordability.
The commission's final report identified several factors getting in the way of affordable housing in New Zealand, one being city councils restricting developments through applying limits on developers.
Although the government-appointed commission report was not specific to Queenstown, QLDC chief executive Debra Lawson said it was great to see the issue was being investigated.
Ms Lawson said the council commended the integrated approach taken and was pleased to see social housing, urban planning and infrastructure was high on the commission's list.
"The report correctly identifies the importance of the community housing sector as a solution to delivering both social housing and immediate market housing."
She said community housing organisations had combined resources from local and central government to "deliver quality housing outcomes for those not able to meet their needs in the market".
The council, like other councils, was under tremendous pressure to keep rates and development contributions at a low level and the QLDC was determined to ensure sufficient land was available in the district to meet housing demands she said.
"Housing affordability is a complex issue; it is more than just the cost of producing a house ... but also energy use, transport choices and costs and other such issues."
Commission chairman Murray Sherwin said it was important councils were ensuring they were not putting up barriers to development and should take a less constrained approach to urban planning.
He said regulation needed to be applied on consent processes with the aim of simplifying and speeding them up.
A environmental hearing is taking place at the Queenstown District Court in regard to the Frankton Flats area, which developers propose to turn into a residential, retail and industrial area.
The council's plan change 19 has outlined several landscape and design concerns, which will be addressed this week in court.
Queenstown Community Housing Trust chairman David Cole said in response to the commission's report they were pleased housing affordability was at the top of the list.
"Affordability is an important barometer on how well the country is perceived to be doing on so many fronts."
However, he said the report focused on Auckland when in Queenstown the affordability issue was just as "severe and presents more difficult complications.
"Affordability presents a challenge for employers to attract and retain key staff in Queenstown that a larger metropolitan city like Auckland doesn't have.
"When the high cost of housing is exacerbated by other higher living costs like energy, it is much more challenging for low-median income workers to make ends meet."
The Property Council New Zealand issued a statement about the commission's report, which gained a vote of support also.
"There is no debating the fact that the pressure on property prices needs to be resolved if we want to give young New Zealanders the opportunity to realise the Kiwi dream of owning their own home," chief executive Connal Townsend said.
"We should be creating opportunities, not discouraging the market because of a lack of availability, high prices and regulatory barriers.
"Property council supports the recommendation to immediately release new land for residential development."
