Councils should increase land supply

BusinessNZ has welcomed the draft report on Housing Affordability released today by the NZ Productivity Commission.

Chief Executive Phil O’Reilly says the Commission has identified key areas where change is required to tackle growing housing unaffordability in the main centres.

“Inadequate supply of land for housing - a result of restrictive local council policies - is a key factor in housing unaffordability.

“Restricted land supply is a major problem, with negative outcomes including overpriced housing and overinvestment in land to the detriment of investment in other productive activities.

“There will be much support for the Commission’s recommendation that councils should allow for more expansion of housing beyond current urban boundaries.

“More broadly, the Commission notes the complexity of planning-related legislation and the fact that the Resource Management Act and the Local Government Act do not connect with each other easily, making it difficult for local government to fulfil its responsibilities relating to planning and land use. There is a clear need for central government to review and integrate these two pivotal pieces of legislation.

“BusinessNZ welcomes the independent nature of the advice tendered by the Productivity Commission.”