The challenge
Auckland had a severe housing shortage and some of the world's least affordable homes.
The case
In 2016 Auckland, New Zealand, adopted its Unitary Plan, which upzoned approximately three-quarters of the city's residential land to allow townhouses and apartments instead of only detached houses. A study of building permits estimated that 21,808 additional dwellings were permitted over the five years following the reform, about 4.11% of the region's dwelling stock. A separate study compared Auckland with a synthetic control built from other New Zealand urban areas. It found that six years on from the reform, rents would have been approximately 28% higher without it.
Why it worked
Broad, citywide upzoning produced far more homes than piecemeal rezoning, and the extra supply held down rents. It became a reference point for zoning reform internationally.
Sources
- Greenaway-McGrevy, R., & Phillips, P. C. B. (2023). The impact of upzoning on housing construction in Auckland. Journal of Urban Economics.
- Greenaway-McGrevy, R., & So, Y. (2024). Can Zoning Reform Reduce Housing Costs? Evidence from Rents in Auckland. Economic Policy Centre Working Paper 016, University of Auckland.
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