Ree Anderson: What's needed to build homes for Auckland

Building frame structure on a new development site. Image / iStock

In March 2012, when the council adopted the Auckland Plan it identified a shortage of two-five years of land supply to build more homes. It also identified a cumulative shortage of housing being delivered to meet Auckland's growth.

So, in addition to producing a new Unitary Plan that will increase development capacity across Auckland, the council entered into the Auckland Housing Accord with central government. The goal of the Accord is to improve housing affordability by increasing land supply and fast tracking the consenting of good quality homes.

Within two years the introduction of Special Housing Areas has made a further 1700 hectares of land available for homes. This land is now being re-zoned and serviced for development or is in the process of being developed. To date the Housing Project Office (HPO) has consented nearly 3000 dwellings/sites within the same time frame. As well, there are additional consents lodged with the HPO with a potential yield of around 2700 dwellings/sites with further applications under discussion.

We know, based on international research and findings from the NZ Productivity Commission that land supply and improved development capacity in existing urban areas is one of the biggest influences on housing affordability. This is why the council has been committed to recommending some areas as special housing.

But the council does not build the homes. That is the role of the private development and community housing sectors. They advise the council that once consents are issued, and depending on dwelling types together with whether the land is in an existing urban area or is rural land earmarked for homes that it can take nine months to two years before dwellings are complete. That is why the council expects the pipeline of homes in SHAs to increase in years three and beyond of the Accord.

Physically it takes time for construction; to lay pipes and roads, build foundations and fit out and complete buildings. Developers may also rely on pre sales to enable the financing of their developments.

The Housing Accord has targets for 39,000 consented dwellings and sections over three years, not built homes. Residential dwelling consents have been used as an industry standard for many years to estimate the number of homes built. Council agrees that new measures that record actual builds is worthwhile and is developing systems to enable the capture of new data.

The council is also being proactive in other ways. It completed a Housing Action Plan at the end of 2012. As a consequence of that, it has approved an Auckland Housing Bond Guarantee that will assist community housing providers to supply more affordable homes. As well, it has established Panuku Development Auckland, and that agency will be working in partnership with the development sector to improve opportunities for more homes to be delivered.

In other words, council has not put all its eggs in one basket but has been working on multiple fronts in the domains it can influence.

Ree Anderson is the director of Auckland Council's Housing Project Office.