Hon Dr Nick Smith

Minister for Building and Housing

21 June 2016 Media Statement
Auckland building activity at all-time high

Building activity in Auckland has topped an all-time high of $6 billion per year, Building and Housing Minister Dr Nick Smith and Auckland Mayor Len Brown said today in releasing the latest Auckland Housing Accord monitoring report.

“There has been phenomenal growth in building activity since the accord was agreed between the Auckland Council and the Government, and we are on track to meet the ambitious targets. The accord set a target of 39,000 new sections created and dwelling consents issued over three years. By 31 March 2016, 30,389 had been achieved as compared to a target of 30,500 at that date - 99.6 per cent of target,” Dr Smith says.

“The number of homes being built has grown by 37 per cent, 22 per cent and 20 per cent in each year since the accord was agreed in 2013. The level of building activity for the year to March 2016 is $6.1 billion, the highest in Auckland ever. The last boom was in 2005, which peaked at $3.8 billion, or $4.8 billion in today’s terms.”

Mr Brown says his stance from the start of the accord has been that local and central government need to keep their foot on the accelerator, and they have.

“These encouraging and impressive figures reflect the real progress we have made and show we have risen to the challenge in a short space of time.

“Of course more needs to be done, and Auckland Council and the Government will continue to work together to consider options across the board to ease Auckland’s housing issues.”

The report shows the number of consented homes in multi-unit buildings is increasing, with the 4174 such consents issued during the period accounting for more than 43 per cent of all residential building consents issued.

“As at 31 March 2016, there were 118 Special Housing Areas (SHAs) declared, with the capacity to deliver more than 58,000 dwellings. Since then, a further 36 new SHAs and six extensions to existing SHAs have been declared. There are now 154 SHAs in Auckland, with the potential to deliver up to 62,200 homes,” Dr Smith says.

The next steps in the Government’s programme include supporting the council in the completion of the new Auckland Unitary Plan, consulting on a new Urban Development National Policy Statement, reform of the Resource Management Act and developing new legislation on urban development authorities.

“We have made real progress in removing the regulatory roadblocks for housing development in Auckland. Today’s discussions have focused on new tools for urban development, provision of infrastructure and capacity issues in the construction industry.”

See the report here: http://www.mbie.govt.nz/info-services/housing-property/housing-affordability/resolveuid/e6333f41710e412da4bd1503e8dcb051

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