Supply side problems must be addressed - Council

Developers have long said that supply related problems need to be addressed to effectively tackle Auckland’s housing issues – and now a new Auckland Council report backs this up.

Thursday, October 1st 2015, 12:38PM

by Miriam Bell

Auckland Council’s comprehensive Housing Supply, Choice and Affordability report examines the demand and supply factors which are contributing to the city’s housing shortage and affordability.

The report also analyses a wide range of potential public policy interventions that could be employed to help alleviate the problems.

In the report, Auckland Council chief economist Chris Parker states that, taken in isolation, none of the initiatives are likely to provide a silver bullet to solve Auckland’s housing issues.

“But employing a multi-layered collaborative approach using the best mix of available tools could make a real difference.”

Parker finds that most of the areas where work is needed relate to supply rather than to demand – and notes that, while leadership in this needs to come from Council, government assistance is necessary.

The report’s suite of supply-side recommendations are covered in detail in two broad categories. These categories are:

• Increasing infrastructure-ready land supply – which involves both intensification and greenfield development.

• Attracting more construction – which involves making design and construction easier and boosting productivity.

Property Council chief executive Connal Townsend was pleased, but not surprised, by the findings of the report.

The changes recommended are all driven by supply, which is a critical reality that must be considered in policy making when addressing Auckland’s intergenerational housing problem, he said.

“The report’s findings echo many decades’ worth of the development sector’s warnings, frustrations and solutions to address regulations that have impeded and essentially driven us to this housing supply shortage.”

He urged the Auckland Council to adopt the report’s recommendations and to work with both Government and the infrastructure fraternity to improve the relevant policies and legislation.

“Auckland desperately needs integrated infrastructure and urban planning that complements and support residential development.”

Adopting targeted rates to pay for infrastructure was one initiative that would make a big cost difference to developers, Townsend said.

“We also strongly urge the Council to follow the report’s advice on scrapping prescriptive urban design rules which are far too restrictive and lack a factual or evidential basis. They are a significant deterrent to development.”

The Auckland Council’s Housing Supply, Choice and Affordability report can be read here.

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