Auckland Housing Rules Need Clarity for Sustainable Growth
Auckland's development sector is calling for urgent clarity on housing intensification rules as the city navigates between local planning changes and national resource management reforms. The uncertainty threatens to undermine sustainable urban growth and investment confidence in Aotearoa's largest city.
Housing Minister Chris Bishop is working through potential changes to Plan Change 120 (PC120), which provides capacity for two million homes over the coming decades. His approach focuses intensification on the central city, City Rail Link stations and main transport corridors while pulling back from suburban areas.
Balancing Growth with Environmental Protection
"I don't intend to comment in advance of those decisions other than to say it is legally complicated," Bishop told the Herald, noting that Cabinet decisions are still weeks away.
Auckland Council chief executive Phil Wilson expressed concerns about running two major planning processes simultaneously. PC120 operates alongside the Government's Resource Management Act reforms, creating a complex regulatory environment for developers committed to sustainable building practices.
"Ultimately, what the development sector wants is reasonable investment certainty, to know what the rules are so they can make informed decisions around their development investments," Wilson said. This certainty is crucial for projects that integrate environmental sustainability with housing affordability.
Expert Voices on Planning Integration
Retired Chief Environment Court Judge Laurie Newhook warned that the Government's RMA reforms intersect problematically with PC120. He described PC120 as "arguably the biggest and most complex planning instrument" since the Auckland Unitary Plan, yet it emerged just weeks before the RMA reform announcement.
The reforms require a new 30-year regional spatial plan, the structured, evidence-based approach that Newhook argues PC120 currently lacks. "Pressing ahead now is simply the cart before the horse," he said.
However, Auckland Deputy Mayor Desley Simpson disagrees, emphasising that Auckland cannot afford to wait five years for perfect legislation while housing needs remain urgent.
Community-Centered Development
"There has to be a local plan that meets the need of Aucklanders and future Aucklanders in place as soon as possible," Simpson said, highlighting the inclusive approach needed for diverse communities.
Property Council chief executive Sally Freeman stressed that certainty at the local level becomes especially important during wider system transitions. The Planning and Natural Environment Bills currently moving through Parliament will eventually replace the RMA.
"The development community needs a stable and predictable planning framework. Clear guidance will support investor confidence and keep housing delivery on track," Freeman said.
Learning from Past Approaches
The current situation builds on intensification plans dating back to 2021, when the Labour Government introduced Medium Density Residential Standards with National's support. These allowed up to three dwellings, three storeys high, on most residential sections, widely known as the "3x3 rule."
Auckland Council introduced Plan Change 78 in 2022 to implement these standards but scrapped it last year in favour of Bishop's alternative approach. This focuses intensification along transport corridors while maintaining capacity for two million homes.
PC120, introduced last October, also restricts development on approximately 12,000 properties identified as flood or landslide risks, demonstrating the integration of climate resilience into urban planning.
Mayor Wayne Brown and Wilson emphasised that the Government must carefully consider any changes to avoid returning to square one, which would significantly delay Auckland's sustainable intensification goals.