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Improving well-being through better housing policy in New Zealand

Author

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  • Andrew Barker

Abstract

New Zealand’s housing supply has not kept pace with rising demand, including from net immigration. Affordability has worsened, particularly for low-income renters. Government action is underway to allow new housing through initiatives such as the Urban Growth Agenda, KiwiBuild and the Housing and Urban Development Authority, but further steps are needed to improve well-being. Clear overarching principles for sustainable urban development and rationalisation of strict regulatory containment policies would allow the planning system to better respond to demand for land. Incentives for local governments to accommodate growth could be increased by giving them access to additional revenue linked to local development. More user charging and targeted rates would also help to fund infrastructure required to service new housing. Government delivery of affordable housing through KiwiBuild should be re-focused towards enabling the supply of land to developers, supporting development of affordable rental housing and further expanding social housing in areas facing shortages.

Suggested Citation

  • Andrew Barker, 2019. "Improving well-being through better housing policy in New Zealand," OECD Economics Department Working Papers 1565, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1565-en
    DOI: 10.1787/b82d856b-en
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    Cited by:

    1. Chong Fennee, 2020. "Housing Price, Mortgage Interest Rate and Immigration," Real Estate Management and Valuation, Sciendo, vol. 28(3), pages 36-44, September.
    2. Emmanuel Joseph Odoyi & Kirsikka Riekkinen, 2022. "Housing Policy: An Analysis of Public Housing Policy Strategies for Low-Income Earners in Nigeria," Sustainability, MDPI, vol. 14(4), pages 1-27, February.

    More about this item

    Keywords

    house prices; housing affordability; housing market; housing supply; infrastructure; land-use and rental regulations; property tax; residential mobility; social housing; well-being;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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