Housing affordability is one of the key factors that contribute to New Zealand’s cost-of-living crisis. The high cost of housing is also one driver of New Zealander’s high level of private indebtedness and an issue of intergenerational equality.
The Initiative’s research into housing affordability takes a different approach to the usual proposals of either just freeing up land and dropping regulations or compelling a reluctant population to live in high-density estates.
Instead, our research focuses on the context in which development takes place: local government. We examine the link between local government finance, and the incentives for local councils to develop land for housing.
There is a missing link between discussions of housing affordability (or rather a lack thereof) and finding workable financing management that allows local government to fund required infrastructure upgrades. We propose to close this gap with our research project examining international best practice.
Political decision-making in New Zealand is among the world’s most centralised. This is not necessarily a problem, but poor incentives combined with little local power can lead to weak local government performance. Local government has jurisdiction over a relatively small range of activities. At the same time, it is subject to expensive central regulatory mandates.
Our research investigates the role of local government in both New Zealand and abroad. What helps local government work well? How can appropriate incentive structures align council interests with those of the country? Can local governments encourage growth rather than constantly be at loggerheads with central government over the pace of consenting?
1. INTRODUCTION 1.1 The New Zealand Initiative welcomes the opportunity to submit on the Better Regional Boundaries Bill. Read more
This is The New Zealand Initiative’s 2026 Prescription for Prosperity. Since 2017, the Initiative has prepared a briefing for the incoming government. Read more
Housing targets have long been a political football. They are also an emotional political subject. Read more
When land is subdivided and new roads are created, every holder of a registered covenant or easement over that land must individually consent before the road can vest as public road. In practice, this can mean obtaining written consent from hundreds of parties and their banks, at significant cost in legal fees and delays that are ultimately passed through to the price of new homes, even though courts have never found that any of these parties has a material interest. Read more
1. INTRODUCTION 1.1 This submission on the Department of Internal Affairs’ draft proposal ‘Simplifying Local Government’ is made by The New Zealand Initiative (the Initiative). Read more
Before anyone can build a house in New Zealand, someone must pay for the pipes and the roads that connect a development to the city. While this seems like a minor detail, it is a central issue for housing affordability. Read more
New Zealand spends more on infrastructure than almost any developed country, yet still cannot build the pipes and roads new housing needs. Why? Read more
Wellington (Wednesday, 17 June 2026) – New Zealand cannot build enough houses because councils cannot afford the pipes and roads that new suburbs need. That is the conclusion of a new report by The New Zealand Initiative. Read more
Canterbury's amalgamation debate has ignited. First up, Christchurch city councillor Sam MacDonald put the cat amongst the pigeons arguing that Selwyn and Waimakariri residents should be made to pay for Christchurch-funded facilities. Read more
Wellington (Thursday, 28 May 2026) – The New Zealand Initiative welcomes the Going for Housing Growth Incentive Fund announced in Budget 2026. The Initiative has argued for more than a decade that councils need a direct financial stake in enabling new housing. Read more