Auckland's housing situation has significantly improved following the implementation of its Unitary Plan in 2016, a radical zoning law reform that allowed for increased housing density. This plan has been credited with a massive construction boom, with approximately 127,000 new dwellings permitted since its inception. This surge in supply has helped the city's housing stock catch up with population growth, shifting Auckland from being one of the least affordable cities globally to one where housing prices are now 7.7 times incomes, compared to 14.4 times in Hong Kong, and less unaffordable than Brisbane, Perth, and Melbourne.
The Unitary Plan expanded the rural-urban boundary and permitted more two- and three-story homes in urban areas, with up to six stories near transport hubs. This policy directly led to about 22,000 new homes being consented between 2016 and 2021, accounting for one-third of all homes consented in residential areas during that period. Overall, between 2017 and 2023, Auckland issued 9.5 consents per 1,000 residents, significantly higher than the 5.9 consents per 1,000 residents between 1996 and 2016.
The increased housing supply has also impacted rental prices. Between 2017 and 2024, Auckland rents increased by 22%, compared to 34% nationally, and research indicates that rents for three-bedroom homes were 26% to 33% lower than they would have been without the Unitary Plan. While the median house price in Auckland is still around $1 million, or 7.5 times the median household income, which is higher than the five times income ratio in 2000, experts suggest that a more balanced market is emerging, attracting first-time buyers. However, some economists caution that true affordability, such as a three-times income ratio, remains an aspirational goal.
