This paper examines New Zealand's housing policy reforms since 2011, which focused on streamlining planning processes and increasing density. Preliminary analysis show the success of the measures and suggest that Australia could rapidly improve housing supply and affordability by taking New Zealand's lead.

The paper highlights the positive impacts of these reforms, in particular the practice of 'upzoning', which refers to changes in planning policies that allow for more housing, including increased building height limits.

Key findings

• New Zealand's housing supply has increased significantly since 2011, surpassing Australia after 2018.
• Upzoning in Auckland and Lower Hutt led to increased housing supply, lower rents, and a rapid increase in social housing.
• Young people have disproportionately benefitted from upzoning due to increased housing affordability and access to jobs.
• Auckland's experience shows that many councils struggle to adopt housing policy reforms on their own without pressure from central government and advocacy groups.
• The construction sector in New Zealand has seen significant growth alongside housing policy reforms.
• NZ's government has proposed to financially reward councils for delivering housing.

Key recommendations

• Australia should adopt supply-side housing policy reforms similar to those in New Zealand.
• Federal and state governments should assert their interests in housing policy, potentially overriding local decisions.
• Policy reforms should recognise the legitimate interest of federal and state governments, while also addressing the incentives of local councils.
• Governments should invest in gathering evidence, such as by funding research and public surveys.
• Cross-party political support should be fostered for supply-side housing reforms in Australia.