Auckland housing retreat sparks new questions over future supply
Prime Minister Christopher Luxon (pictured) has confirmed the government will scale back its current approach to housing intensification in Auckland, following what he calls “very dynamic” talks with Housing Minister Chris Bishop, who has been driving the controversial policy, The Post and RNZ reported.
After his State of the Nation speech in Auckland, Luxon said the debate was about “how much densification” and “where it happens.” He told Aucklanders “we know it's a sensitive issue” and promised to “listen” and “digest” the feedback.
“I don't think there's a problem when you actually say, I've listened to feedback and I'm going to do something different about it on the basis of that,” he said.
Two million homes plan under pressure
Bishop had directed Auckland Council to plan for up to two million homes over the coming decades, but the coalition is now considering loosening those intensification rules.
That requirement became a lightning rod for opposition, fuelling intense debate and a heated consultation under Plan Change 120 (PC120), on which Auckland Council has already spent almost $13 million.
Luxon rejected any suggestion of a rift with Bishop, saying they’d had a “very dynamic conversation” well before Christmas.
“It won't surprise you, but in our government, we actually talk to each other a lot, and quite dynamically and consistently," he said.“It's regular. It's not formalised. We're just very open and transparent.”
Third big pivot on Auckland housing rules
This latest shift amounts to a third major overhaul of Auckland’s housing rules in just a few years. National once backed “3x3” rules allowing widespread intensification, before Luxon reversed that position and moved to PC120. Now he is signalling another change of course.
Luxon said he wants the council to finish its consultation, while the government will “be prepared to listen.”
“There is genuine change that's going to be needed, and we're up for doing that,” he said.
Luxon said decisions on specific suburbs sit with the council, but he wants the right mix of CBD density, greenfields, and suburban growth.
What happens next – and who pays the price
Options include reducing required intensification – likely needing a law change and risking higher prices by constraining supply – or issuing a new directive to the independent hearings panel already considering PC120.
“We believe very strongly in densifying over transport hubs … We also need to open up greenfields,” Luxon said.
Auckland councillor Christine Fletcher called the two million homes requirement “the key issue”, warning that while a rethink is “courageous”, “the devil is going to be in the detail.”
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