LGNZ supports identifying solutions to housing affordability

Local Government New Zealand (LGNZ) supports identifying solutions to address housing affordability and as part of this, welcomes the Productivity Commission’s new issues paper ‘Using Land for Housing’.

The Issues Paper raises some important questions. It is the first step in the Commission’s latest inquiry looking at the by-laws, processes and practices of local planning and development systems for residential land within New Zealand’s fastest growing urban areas.

It seeks answers to a wide range of questions that the sector will consider. These include how current land planning systems can be made to better benefit cities and how local authorities assess demand for and supply of land.

Local government has a role to play in housing affordability by processing building and subdivision consents, zoning land for development and setting densities for building. However, other factors are also highly influential such as when the private sector sells land and the cost of building materials.

“This inquiry will help to identify best practice processes for the local government sector, which is good news for everyone. LGNZ wants to see affordable housing be accessible to all communities,” LGNZ President Lawrence Yule says.

“While housing affordability has macro-economic impacts across all of New Zealand, it is not a widespread problem. Our research has found most councils do not have a shortage of available land zoned for development. Housing affordability is a multi-faceted issue that will require a mix of interventions to correct it.”

The Productivity Commission issues paper highlights the need to reform planning processes and rules, which is a priority for the local government sector. Local government is currently working with central government on speeding up building consenting and wants to work with central government on the development of effective policies around the Resource Management Act.

LGNZ is seeking central government and the business sector work together with local government and communities to address housing affordability.

The local government sector looks forward to being involved in the Productivity Commission’s inquiry as key participants.

ENDS

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