High-density living is frequently touted as the silver bullet for New Zealand’s persistent housing crisis. While it undoubtedly offers advantages in terms of affordability, infrastructure efficiency, and land utilization, the question remains: is it the only solution, or are we overlooking other viable strategies that could contribute to a more balanced and sustainable housing landscape?
Understanding the Allure of High-Density Housing in New Zealand
The appeal of high-density living in New Zealand stems from several key factors. Firstly, it allows for more efficient use of increasingly scarce and expensive land, particularly in urban centers like Auckland, Wellington, and Christchurch. By building upwards rather than outwards, more dwellings can be accommodated within existing city boundaries, reducing urban sprawl and associated infrastructure costs. Secondly, high-density developments can potentially lead to greater affordability, as the cost of land is spread across multiple units. This is especially important for first-home buyers and lower-income households struggling to enter the property market. Thirdly, concentrating residents in specific areas can promote the use of public transport, walking, and cycling, reducing reliance on private vehicles and contributing to a lower carbon footprint.
Auckland, New Zealand’s largest city, provides a compelling case study. The Auckland Unitary Plan, implemented in 2016, aimed to intensify housing development by allowing for more apartments, townhouses, and terraced houses in previously low-density areas. The initial results have been mixed, with some areas seeing significant development and increased housing supply, while others have faced resistance from existing residents concerned about changes to neighborhood character and infrastructure capacity. While the Unitary Plan has demonstrably increased housing construction, critics argue it hasn’t solved the affordability crisis, with house prices remaining high relative to income. We need to consider whether higher density has been delivered without investment in the appropriate infrastructure to support it.
The Limitations of a Sole Focus on High-Density
Despite its potential benefits, relying solely on high-density housing as the solution to New Zealand’s housing crisis has several limitations. One significant concern is the potential for negative impacts on quality of life. Overcrowding, lack of green spaces, noise pollution, and inadequate access to amenities can all contribute to a less desirable living environment. A study by the Ministry for the Environment found that access to green spaces has substantial benefits on mental well being, which are not easily achieved in high-density environments. Considerations for design and access to green spaces are crucial to ensuring positive mental health impacts. It also needs to accommodate lifestyles of families.
Another challenge lies in the planning and implementation of high-density developments. Poorly designed or poorly located high-density projects can exacerbate existing problems, such as traffic congestion, infrastructure strain, and social segregation. For example, if a high-density development is built without adequate public transport links, it can lead to increased car dependency and worsen traffic congestion. Similarly, if high-density housing is concentrated in lower-income areas, it can reinforce existing patterns of social inequality. It’s crucial that high-density developments are carefully planned and integrated into the existing urban fabric, with consideration given to the needs of all residents. Auckland Transport projects are often delayed and under-funded, and therefore, are not ready for the new high-density living environments.
Furthermore, high-density living may not appeal to all demographics. Families with children, for instance, may prefer larger homes with gardens and outdoor spaces that are often not available in high-density settings. Older people may also find high-density living challenging, particularly if they have mobility issues or require easy access to healthcare services. We must consider how our zoning and planning rules are affecting the lifestyles of people within the community. To cater to a diverse population with varying needs and preferences, a mix of housing types, including low-density and medium density options, is essential.
Exploring Alternative and Complementary Solutions
Given the limitations of a sole focus on high-density housing, it’s crucial to explore alternative and complementary solutions that can contribute to a more balanced and sustainable housing landscape. These could include:
- Medium-Density Housing: Often referred to as the “missing middle,” medium-density housing encompasses a range of housing types, such as townhouses, duplexes, and walk-up apartments, that offer a compromise between high-density and low-density living. Medium-density housing can provide a more affordable and accessible option for families and individuals who prefer a larger living space and a greater sense of community than typically found in high-rise apartments. The recent Medium Density Residential Standards (MDRS), implemented in many New Zealand cities, aim to encourage the development of this type of housing by allowing for building up to three homes of up to three storeys on most residential sections without resource consent. However, it’s not implemented by all council areas and is not mandatory.
- Urban Regeneration: This involves revitalizing existing urban areas by redeveloping brownfield sites (previously industrial or commercial land) and upgrading existing infrastructure. Urban regeneration can create new housing opportunities while also improving the overall quality of life for residents. A good example is the Wynyard Quarter in Auckland, which has transformed a former industrial area into a vibrant waterfront precinct with a mix of residential, commercial, and recreational spaces. Currently, due to compliance difficulties involving the Resource Management Act, there are not enough brownfield sites being redeveloped.
- Improving Infrastructure: Investing in upgrades to existing infrastructure, such as transportation, water, and wastewater systems, is essential to support both high-density and low-density housing development. Without adequate infrastructure, new housing developments can strain existing resources and lead to problems such as traffic congestion, water shortages, and sewage overflows. A recent report by Infrastructure New Zealand highlighted the significant infrastructure deficit facing the country and the urgent need for increased investment in this area.
- Addressing Land Costs: High land costs are a major driver of housing unaffordability in New Zealand. Policies that aim to reduce land costs, such as land value taxes and reforms to the Resource Management Act, could help to make housing more affordable. According to the Lincoln Institute of Land Policy, land value taxation can provide a more efficient and equitable way to fund local government services and incentivize the efficient use of land.
- Community Land Trusts: This is a non private organizational model designed to ensure community stewardship of land for long term affordability. The land is held by the trust and made available for housing or other uses through long term leases. This separates the land from the buildings, which can make rentals affordable while keeping resources. New Zealand has a number of CLTs operating. These are particularly suited to remote communities.
- Co-housing: This is a type of intentional community comprised of private homes clustered around shared space. These offer more affordable solutions on a larger property. The residents jointly manage the development and share in community activities and meals.
- Reforming the Resource Management Act (RMA): The RMA has been widely criticized for its complexity, inefficiency, and its contribution to housing unaffordability. Reforms to the RMA, such as streamlining the consent process and reducing regulatory barriers to development, could help to increase the supply of housing and lower costs. The current government is in the process of introducing a new Natural and Built Environment Act, which is intended to replace the RMA and address many of its shortcomings. The new legislation introduces significant changes in its approach, which could lead to time-consuming processes and therefore, higher costs in the short term.
Case Studies: Learning from Other Countries
Several countries have successfully implemented a mix of housing policies to address their housing crises. Singapore, for example, has adopted a comprehensive approach that includes a strong public housing program, strict land-use planning regulations, and a commitment to providing affordable housing for all citizens. Approximately 80% of Singaporeans live in public housing, which is built and managed by the Housing and Development Board (HDB). The HDB offers a range of housing options, from high-rise apartments to landed properties, and provides subsidies and grants to help citizens purchase their homes. A large portion of Singapore’s affordable public housing is funded through the Central Provision Fund via wages.
Vienna, Austria, is another example of a city that has successfully addressed its housing needs through a strong focus on social housing and urban planning. Approximately 60% of Vienna’s residents live in social housing, which is owned and managed by the city government. Vienna’s social housing program provides affordable housing for a wide range of income levels and includes a mix of housing types, from apartments to townhouses. The city also invests heavily in public transport and green spaces to ensure that all residents have access to essential amenities and a high quality of life.
These examples suggest that a combination of policies, including public housing, land-use planning, and infrastructure investment, is needed to address housing affordability and ensure that all citizens have access to decent and affordable housing. New Zealand can learn from these examples and adapt successful strategies to its own unique context.
Balancing Density with Quality of Life in New Zealand
Ultimately, the key to addressing New Zealand’s housing crisis lies in finding a balance between density and quality of life. While high-density housing can play a role in increasing housing supply and reducing costs, it’s essential that these developments are well-designed, well-located, and integrated into the existing urban fabric. Consideration must be given to the needs of all residents, including access to green spaces, public transport, and essential amenities.
Furthermore, it’s crucial to recognize that high-density housing is not the only solution. A mix of housing types, including medium and low-density options, is needed to cater to a diverse population with varying needs and preferences. Policies that aim to reduce land costs, improve infrastructure, and streamline the planning process can also help to increase the supply of housing and lower costs.
Practical Considerations for New Zealand Homebuyers
If you’re considering buying a high-density property in New Zealand, here are some practical considerations to consider:
- Body Corporate Fees: High-density properties, such as apartments and townhouses, typically have body corporate fees that cover the cost of maintaining common areas, such as gardens, swimming pools, and gyms. Be sure to factor these fees into your budget when considering a high-density property. Body Corporate committees and fees can come with restrictions on noise, pets, and maintenance. Consider the implications of those on your lifestyle.
- Noise Insulation: Noise from neighbors and traffic can be a significant issue in high-density living. Check the soundproofing of the property before you buy. Newer buildings often have better sound insulation than older buildings.
- Location and Amenities: Consider the location of the property in relation to public transport, shops, schools, and other amenities. A well-located property can make high-density living more convenient and enjoyable.
- Building Design and Construction: Pay attention to the design and construction quality of the building. A well-designed and well-built building will be more comfortable to live in and will require less maintenance over time. Check whether the Building Code was met at the time of construction and ask to review the paperwork with the Council.
- Future Development Plans: Research future development plans for the area. New developments could impact views, privacy, and traffic congestion. Council websites and local newspapers are good sources of information.
Examples of Planning Challenges
Here are a few real-world examples illustrating planning challenges and their impact on housing development in New Zealand:
- Auckland’s Special Housing Areas: Introduced in 2013, these areas were intended to fast-track housing development by streamlining the consent process. While some SHAs were successful, others faced challenges related to infrastructure constraints, community opposition, and lack of developer interest. This shows that even with simplified planning processes, other factors can significantly impact development outcomes.
- Christchurch’s Post-Earthquake Rebuild: The rebuild effort following the 2011 Canterbury earthquakes faced numerous planning challenges, including land contamination, infrastructure damage, and the need to balance speed with quality and community consultation. These challenges highlight the complexities of rebuilding after a major disaster and the importance of having a robust and flexible planning framework.
- Controversial Housing Developments: Many residential developments in cities such as Auckland and Wellington have been halted due to concerns regarding natural environments such as streams on private properties. Land has been tied up due to regulatory delays or failures.
FAQ Section
Here are some frequently asked questions about high-density living in New Zealand:
Q: Is high-density living only for young professionals and students?
High-density living can be suitable for a variety of demographics, including young professionals, students, and retirees. However, it may not be ideal for all families with children, particularly those who prefer larger homes with gardens. A mix of housing types is needed to cater to a diverse population with varying needs and preferences.
Q: Are high-density apartments always cheaper than standalone houses?
While high-density apartments can often be more affordable than standalone houses, this is not always the case. The price of a property depends on a variety of factors, including location, size, quality, and amenities. In some areas, high-end apartments can be more expensive than smaller houses. It’s also important to consider the ongoing costs associated with high-density living, such as body corporate fees.
Q: Does high-density living automatically mean lower quality of life?
High-density living does not automatically mean lower quality of life. A well-designed and well-located high-density development can provide a comfortable and enjoyable living environment. However, poorly planned or poorly designed developments can lead to problems such as overcrowding, noise pollution, and lack of green spaces. Careful planning and attention to design are essential to ensure that high-density living enhances rather than detracts from quality of life.
Q: How do the new MDRS rules improve housing affordability?
The MDRS rules allow for more housing to be constructed on single residential lots, increasing the supply of housing and potentially driving prices down. Also, the simplified consenting process reduces the time and cost of development. However, the effectiveness of the MDRS in improving affordability will depend on a variety of factors, including the availability of land, the cost of construction, and the overall economic climate. If the rules are implemented, but land and materials have increased in price, it does not guarantee affordability.
Q: Are there any government grants or subsidies available for first-home buyers purchasing high-density properties?
The First Home Grant and First Home Loan schemes may be available to eligible first-home buyers purchasing high-density properties. Eligibility requirements vary depending on the scheme and location. It’s important to check the latest criteria on the Kāinga Ora website or with a registered bank to see eligibility requirements.
References
- Auckland Council. (2016). The Auckland Unitary Plan.
- Ministry for the Environment. (2020). The environment and wellbeing: Connections between environmental quality and human wellbeing in New Zealand.
- Infrastructure New Zealand. (2021). New Zealand Infrastructure Strategy 2021-2051: A 30-year vision.
- Lincoln Institute of Land Policy. (n.d.). Land Value Taxation.
- Housing and Development Board (HDB), Singapore.
- City of Vienna. (n.d.). Social Housing in Vienna.
While high-density living certainly holds a necessary place in New Zealand’s housing future, it is not a one-size-fits-all remedy. We should consider how existing regulations can be simplified to deliver a variety of affordable housing options, from co-housing to low-density living. The focus should then be on holistic strategies including medium density options, streamlined land-use processes and land value measures. It’s time to demand a collaborative commitment from policymakers, developers, and communities. Let’s move towards a more balanced and sustainable housing landscape for all New Zealanders.
