But he has sent a strong signal by saying he wants central Government to get closer to the Auckland Council's decision-making processes to make sure it is working for the whole economy.
Productivity Commission chairman Murray Sherwin explained that "affordable, high-quality housing is one of life's essentials, yet many New Zealanders struggle to find housing which matches their needs and incomes.
"One key reason why housing is so expensive and choices are so limited -- especially in our fast-growing cities -- is the lack of sufficient land and rules that unduly limits how land can be used for housing."
This is a major contributor to the rocketing price growth both within cities (brownfield land) and outside them (greenfield land). Development Auckland -- which is an Auckland Council controlled organisation -- is developing new areas like the Hobsonville estate.
The commission has paid particular attention to Auckland -- both as the country's largest and most expensive city. "We found that the planning system is too slow to respond to increases in population and the associated demand for housing," said Sherwin.
"We also found that council planning decisions are often skewed in favour of existing residents and ratepayers, and are stacked against accommodating new demand. These factors limit the supply of land for new housing and push up the value of existing houses."
The report noted that where cities had an inability to grow upwards or outwards, it was inevitable that prices of land would rise. In Auckland, the price of land has risen to the extent that land now often accounts for around 60 per cent of the price to build a new home.
In all, the commission made 70 recommendations advocating for changes to building limits and restrictions, how rates are assessed and how infrastructure is funded, in addition to granting compulsory acquisition powers to central Government to speed up urban development.
Building and Housing Minister Dr Nick Smith said his key takeaway was that land supply was the most critical issue affecting housing affordability.
"The steep increase in section prices over the past two decades -- as much as fivefold in Auckland -- is the core issue we must resolve if we are to give young New Zealanders a fair chance at home ownership."
Regulatory reform comprises a significant portion of the commission's recommendations with fundamental changes to the planning system proposed.
The report found the existing planning framework suffered from a lack of cohesiveness in present law, failed to sufficiently account for national interests and was unresponsive to market conditions.
