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The Impact of Upzoning on Housing Construction in Auckland: Extensions and Updated Results

Author

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  • Ryan Greenaway-McGrevy

Abstract

In 2016, Auckland upzoned approximately three-quarters of its residential land. Using a quasi-experimental framework, Greenaway-McGrevy and Phillips (2023) argue that the zoning reform generated a significant increase in residential housing permits over the five years subsequent to the policy change. This paper extends their methodology and analysis along several dimensions. First, it incorporates an additional year of data, 2022. Second, it expands the control group in the quasi-experimental framework to include rural and business zones. Third, it incorporates Special Housing Areas (SpHAs) into the analysis, which was an interim program to encourage housing supply prior to the AUP becoming operational, and allowed developers to build under the upzoned regulations of the "Proposed" AUP (PAUP) in exchange for a proportion of the development to be designated as affordable housing. Under these alternative methods for modeling the impact of the policy change, we find that the empirical evidence continues to support the zoning reform having a substantial impact on housing permits issued in Auckland.

Suggested Citation

  • Ryan Greenaway-McGrevy, 2023. "The Impact of Upzoning on Housing Construction in Auckland: Extensions and Updated Results," Working Papers 015, University of Auckland, Economic Policy Center (EPC).
    • Handle: RePEc:cyc:wpaper:015
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    File URL: https://www.auckland.ac.nz/assets/business/about/our-research/research-institutes-and-centres/Economic-Policy-Centre--EPC-/WP015%20-%202.pdf
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    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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