PM Luxon and Building and Construction Minister Chris Penk announced three major changes to building supplies to address shortages . Video / Mark Mitchell
New Auckland house-building has finally outstripped population growth, according to a University of Auckland economics academic.
Associate Professor Ryan Greenaway-McGrevy said Census data from Census 2023 showed Auckland got an extra 64,000 new homes between 2018 and 2023, up nearly 12 per cent, while population growth was only 5per cent.
It was heartening to see so much growth in a city which has for decades had a critical housing shortage, he said.
The 2016 Auckland Unitary Plan’s upzoning spurred intensification by rezoning much residential land for higher-density housing.
“Data released from the latest Census showed that the dwelling stock in Auckland increased by 11.9 per cent since 2018, while the population grew by only 5 per cent,” he said.
“Some of this was due to population growth slowing after Covid-19, but a big part of the story has been the construction boom enabled by Auckland’s upzoning in 2016.
“The boom reverses a persistent trend of population growth outstripping housing supply in the city.”
Associate Professor Ryan Greenaway-McGrevy of the University of Auckland's economics department has studied the relationship between rents and incomes.
Populations have grown across all regions. The population growth rate for Auckland was 5.4 per cent from 2018 to 2023, almost half of the growth rate for the Tasman region (10 per cent).
The slowest population growth was in Wellington (2.8 per cent) and Southland (2.7 per cent).
Census 2018 recorded 547,059 total Auckland dwellings but Census 2023 showed housing numbers had risen 11.9 per cent or 64,836 dwellings to hit 611,895 dwellings.
The term dwellings includes townhouses, apartments, units as well as stand-alone homes.
Fastest growing areas
So where is all that growth happening?
It’s out on the fringes on the north, west and south, that the real growth has occurred.
The Upper Harbour Board Area was the fastest-growing, up 27.2 per cent from 22,000 to 28,000 new dwellings between 2018 and 2023.
That area includes Whenuapai, Herald Island, Hobsonville, West Harbour, Paremoremo, Greenhithe, Albany, Rosedale, Northcross, Unsworth and Pinehill.
The second-fastest growing was the Papakura Local Board area with 27 per cent new-house growth, from 18,000 to 23,000. That area extends from Drury in the south to Alfriston in the north, and includes Takanini, Hingaia, Red Hill, Pahurehure and Papakura town centre.
Rodney Local Board area was third, up 18.7 per cent from 28,000 dwellings to 33,200 dwellings. That area includes Kumeu/Huapai, Helensville, Warkworth, Kawau Island, Matakana and Wellsford.
The Maungakiekie-Tāmaki Local Board area had 16.3 per cent new-home growth, from 26,000 dwellings to 30,500. That area covers the southeastern part of the isthmus, including One Tree Hill, Royal Oak, Onehunga, Penrose, Mt Wellington, Panmure and Glen Innes.
The Franklin area’s new dwelling count rose 14.3 per cent growth, from 28,000 dwellings in 2018 to 32,000 by last year. The area encompasses Pukekohe, Waiuku and Beachlands, Awhitu Peninsula, Karaka, Ardmore, Clevedon, Whitford, Maraetai, Kawakawa Bay and Orere Point.
The Māngere-Ōtāhuhu Local Board area dwellings were up 13.2 per cent from 19,000 to 21,600 while Ōtara-Papatoetoe new dwellings grew by 12.9 per cent from 21,700 to 24,500.
Manurewa local board area had 12.6 per cent new dwelling growth from 25,000 to 28,000. That area includes Clendon Park, Hillpark, Randwick Park, The Gardens, Rata Vine, Totara Heights, Manukau Heights and the coastal suburbs of Weymouth and Wattle Downs.
Waitematā Local Board area had 12.3 per cent dwelling growth. This area includes the CBD. Dwelling numbers rose from 41,000 to 46,000.This area takes inWestmere, Grey Lynn, Herne Bay, Ponsonby, Arch Hill, St Marys Bay, Freemans Bay, Newton, Eden Terrace, the city centre, Grafton, Newmarket and Parnell.
The Silverdale and Millwater areas are popular for new homes. Many new dwellings are apartments and townhouses. Photo / Greg Bowker
Slowest growing areas
The area where new homes increased at the slowest rate was in the Ōrākei Local Board area, which had only 3.8 per cent new dwelling growth from 32,000 to 34,000. That is one of Auckland’s most expensive areas encompassing Ōrākei, Mission Bay, Kohimarama, St Heliers, Glendowie, St Johns, Stonefields, Meadowbank, Remuera and parts of Ellerslie.
Waiheke had only 5.3 per cent from 6045 dwellings to 6300 dwellings. Devonport Takapuna Local Board’s area got only 6.4 per cent growth from 22,000 to 24,000.
Kaipātiki Local Board area new dwellings grew by only 5.7 per cent from 30,800 to 32,500. Waitākere Ranges Local Board area dwellings grew by 6.5 per cent from 18,700 to 19,900.
National picture
Nationally, regions with the fastest growing dwelling counts were Auckland (11.9 per cent), Tasman (11 per cent) and Canterbury (10.1 per cent) and slowest were Gisborne (4.4 per cent) and Southland (4.6 per cent).
Stats NZ data for March showed falling new dwelling numbers approved, especially in Auckland.
The seasonally-adjusted number of new residential dwellings consented fell 0.2 per cent after rising 16 per cent in February. 35,236 new dwellings were consented annually, down 25 per cent from the year ended March 2023.
In March this year, 2931 new dwellings were consented. They included 1297 townhouses, flats, and units, 1251 stand-alone houses, 224 apartments, and 159 retirement village units.
The value of non-residential building work consented for the year was $9.5 billion, down 1.1 per cent from the year ended March 2023.
“Looking at the longer-term trend, it’s clear that New Zealand’s building sector has moved into a tougher period,” Westpac economists said on May 2.
“However, it looks like consent issuance is finding a floor.”
The bank expected more weakness in what it called the volatile multi-unit space, which included townhouses and other medium-density developments.
New dwellings by region were:
14,699 in Auckland for the year to March 31, down 28 per cent;
3228 in Waikato, also down 28 per cent;
2358 in Wellington, down 35 per cent;
5094 in the rest of the North Island, down 19 per cent;
6575 in Canterbury, down 20 per cent;
3281 in the rest of the South Island, down 19 per cent.
Last month, the Government announced new regulations to the Building Act to make it easier for minor changes to be made to a building consent.
Building and Construction Minister Chris Penk said the Government would clarify the definition of a “minor variation” and introduce “minor customisations” to the Building Act.
That would mean Kiwis won’t need to submit a new consent for minor product or design changes, he said.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
