Housing Minister Chris Bishop is pushing a plan to slash housing costs and boost productivity. He observed that New Zealand’s economic performance now resembles nations like Poland and Hungary, which endured decades of communist rule, as opposed to Australia and the US.
Speaking to local government leaders, Bishop blamed restrictive land-use policies and infrastructure funding failures for driving up house prices, which now sit at over six times the average wage—double what they were in 2002.
His reform package consists of three pillars, with the latest focusing on overhauling infrastructure funding. Bishop will replace developer contributions with a more flexible Development Levy System, ensuring councils can recover infrastructure costs fairly.
The move is designed to break the political deadlock where existing residents oppose new housing due to infrastructure costs being unfairly passed onto ratepayers. “It makes existing residents resistant to growth,” Bishop said.
Other key changes include strengthening targeted rates, improving the Infrastructure Funding and Financing (IFF) Act, and expanding tools for value capture. Bishop also confirmed a focus on Transit-Oriented Development (TOD), encouraging high-density housing around transport hubs to reduce urban sprawl.
Infrastructure levies will ensure those benefiting from new transport projects contribute to the cost.
Centrist Ltd.