NZ Launches Consultation on Sweeping Planning Reform to Tackle Housing Crisis

New Zealanders are being called on to help shape a transformative overhaul of the country’s urban planning framework, as the government launches public consultation on reforms set to replace the Resource Management Act (RMA). Housing and RMA Reform Minister Chris Bishop emphasized the urgent need to remove planning constraints that have driven the country’s house prices to some of the highest in the developed world.

“Fixing our housing crisis involves fixing the fundamentals of our housing market – freeing up land, improving infrastructure funding, and providing the right incentives to enable growth,” Bishop said during the release of the new discussion document titled Going for Housing Growth.

The RMA's Legacy and the Path Ahead

For decades, the RMA has dictated how land, air, and water resources are managed, but it has faced widespread criticism for being overly complex and an obstacle to urban development. In 2027, it will be replaced by a new planning system designed to fast-track housing and infrastructure delivery.

The new system promises a more responsive, streamlined framework that encourages both vertical and horizontal urban expansion. Bishop notes that the reforms are not just administrative changes—they aim to fundamentally shift how cities grow by supporting higher housing density and unlocking fringe land for development.

Six Legislative Changes at the Heart of the Reform

Minister Bishop highlighted six key changes the government is committed to implementing through the new system:

1. Housing Growth Targets for Tier 1 and 2 Councils: These will ensure councils actively plan for and enable sufficient housing.

2. Urban Fringe Expansion Rules: Simplifying processes for cities to expand outward to meet population pressures.

3. Strengthened Intensification in the NPS-UD: Enhancing provisions in the National Policy Statement on Urban Development to increase housing supply near transport and urban centers.

4. Wider Mixed-Use Zoning: Making it mandatory for councils to allow a blend of residential, commercial, and other uses to promote dynamic urban areas.

5. Abolition of Minimum Floor Area and Balcony Mandates: Removing these often arbitrary requirements to reduce building costs and increase flexibility in design.

6. Reconsideration of Medium Density Residential Standards (MDRS): Initially proposed to be optional, the government has now reversed course and confirmed that MDRS will remain mandatory for most councils, given their widespread adoption to date.

Tailored Solutions for Auckland and Christchurch

Recognizing the unique planning contexts in the country’s largest urban areas, the reforms also include bespoke legislative provisions. In Auckland, for example, the Council is being enabled to withdraw and replace its existing Plan Change 78 (PC78), ensuring that new planning rules align with housing demand and infrastructure like the City Rail Link. Christchurch, too, will benefit from custom legislative mechanisms.

Discussion Document Opens Public Dialogue

The newly released Going for Housing Growth document provides detailed proposals on how these reforms will be integrated into the new system. It explores:

• Future development strategies and spatial planning

• Mechanisms for responsive planning and addressing rural-urban boundaries

• Enabling a mix of uses in urban areas

• Evaluation of current minimum floor area and balcony requirements

Feedback from the consultation will be essential in shaping the final structure of the new resource management framework.

A Call for Public Participation

The consultation period runs from 18 June to 17 August 2025, and is part of the government’s commitment to early, non-statutory engagement. “I encourage New Zealanders to share their views on these important issues by making a submission,” Bishop urged.

With the new system set to go live in 2027, the current consultation marks a critical juncture in New Zealand’s journey toward resolving its housing affordability crisis and fostering more sustainable, inclusive urban development.