Auckland land inventory restrictions: New insights from HTWG report
A report released by the Housing Technical Working Group (HTWG) has examined the extent of land supply restrictions in Auckland and their evolution over time.
The HTWG, a collaborative effort between Te Tai Ōhanga (The Treasury), Te Tūāpapa Kura Kāinga (Ministry of Housing and Urban Development), and Te Pūtea Matua (Reserve Bank of New Zealand), sheds light on the barriers to urban land availability and the associated costs.
Evidence of land supply restrictions
The paper, Analysis of Availability of Land Supply in Auckland, provides clear evidence of urban land supply restrictions. It estimated that in 2021, these restrictions added $378.40 per square meter to the price of urban land just inside Auckland’s Rural Urban Boundary line.
“This is important because it backs up the Housing Technical Working Group’s earlier proposition that New Zealand house prices were driven higher by a combination of declining interest rates globally and restricted land supply,” said Treasury chief economic adviser and HTWG spokesperson Dominick Stephens (pictured above).
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Progress since the Auckland Unitary Plan
The report also found some evidence of improvement in land availability within certain areas of Auckland following the introduction of the Auckland Unitary Plan five years ago.
However, the findings require careful interpretation due to the sensitivity of indicators to measurement decisions, such as the definition of rural-urban boundaries and the classification of new builds.
“When measured over time, the indicators can help determine whether restrictions are loosening or tightening,” Stephens said.
Policy implications and next steps
The HTWG’s indicators offer valuable policy insights by identifying the underlying causes of land restrictions and guiding which interventions are likely to be most effective.
Grouping regions based on these indicators can help policymakers target restrictions more efficiently, while long-term tracking can evaluate the impact of policy changes and economic factors, such as interest rate fluctuations.
Part of a larger series
This paper is the third publication from the HTWG, following:
- What Drives Rents in New Zealand? National and Regional Analysis (August 2023)
- Assessment of the Housing System: Insights from the Hamilton-Waikato Area (August 2022)
These findings reinforce the HTWG’s commitment to informing housing policy with robust, data-driven insights, offering a clearer path to addressing New Zealand’s housing challenges.
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