Inner-city housing intensification, infrastructure boost to reshape property trends
The upcoming City Rail Link (CRL) project in Auckland is poised to redefine the city’s housing market and urban development, according to Barfoot & Thompson managing director Peter Thompson (pictured).
“Ultimately, in terms of its impact on Auckland housing, the City Rail Link (CRL) will potentially turn out to be as big a game changer as the Harbour Bridge and the Southern, Northern and Western motorways proved to be in their time,” Thompson said in his latest commentary.
The transformative potential of the CRL comes as Auckland’s housing landscape is already undergoing change. Auckland has fallen out of the top 10 least affordable cities globally, now ranking 16th in Demographia’s 2025 index, with a house price-to-income ratio of 7.7 – below Sydney, Melbourne and Brisbane. This change reflects years of intensified construction and smaller dwelling types encouraged by post-Unitary Plan zoning reforms.
50,000 commuters per hour: What it means for housing
The CRL, set to open in 2026, will link the city’s key train lines through a 3.45km underground rail tunnel, significantly increasing capacity.
“The CRL, when fully operational, will be capable of moving more than 50,000 people an hour into, around and out of the central city,” Thompson said.
“Its implications for the city’s housing are as significant as its ability to improve public mobility.”
Housing intensification already underway
Thompson said the project is already transforming housing policy and development patterns. Government mandates have paved the way for higher-density developments around CRL station areas, including buildings of up to 15 storeys.
“In the wake of these large housing complexes will come smaller, private initiatives filling in the gaps with apartments and town houses,” he said.
While some residents may struggle with the transition, Thompson expects these intensified zones to develop their own identity.
“Some will find such intensification a challenge… but over time these new communities will create their own character,” he said.
Demand for inner-city living set to rise
Thompson believes the CRL will meet the growing preference for urban lifestyles.
“It will also help meet the housing needs of a growing number of people whose preference is for inner city living,” he said.
Thompson also noted the broader benefits of higher-density populations in central areas.
“Higher density population within the CRL transport corridor will also make greater use of existing infrastructure and services, adding life to the central city’s cafés and entertainment venues,” he said.
“It will also give the central business district’s 160,000 strong workforce an easy means of moving around.”
Auckland still growing despite migration trends
Addressing concerns about population shifts out of Auckland, Thompson stressed the city’s long-term growth trajectory.
“The fact is Auckland is still set to hit a population of two million people within the next 10 years,” he said. “That’s a population increase of some 300,000 on today’s number of residents. That’s greater than the number of people who live in Hamilton.”
The rise of apartment and townhouse living
Thompson said Auckland’s evolving housing typologies are catching up with global norms.
“While apartment and town house living still has some way to go before being universally accepted, it is really Auckland catching up with what is the norm in many European and North American metropolitan areas,” he said. “In Auckland, the time for the rise of apartment and town house living has arrived.”
Thompson noted that local housing preferences have gradually shifted over recent decades – from traditional single-storey homes to more compact, open-plan dwellings.
New long-term data supports this evolution but also reveals some limitations. According to realestate.co.nz, standalone homes have significantly outpaced apartments in value growth over the past decade, rising 56.8% compared to 25.1% between June 2015 and June 2025.
The figures suggest that even as CRL-linked intensification expands apartment options, standalone homes may retain a capital growth edge due to land value and buyer preferences.
Infrastructure investment key to liveability
Thompson concluded that projects like the CRL are vital to preserving Auckland’s livability and competitive edge.
“It is investments in future infrastructure such as the CRL, and housing intensification such as the 15-storey special zones, that will ensure that as Auckland grows it retains its ability to offer its residents the best lifestyle possible,” he said.
“Without such investment, Auckland would be under threat of losing the vitality that makes it the country’s leading metropolitan area.”
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