The Government has announced it will amend the Resource Management Act (RMA) to reduce the minimum housing capacity requirement under Auckland Council’s Plan Change 120 from just over two million homes to at least 1.6 million, a move Housing and RMA Reform Minister Chris Bishop says will better align growth with infrastructure and community support — but which opposition parties have labelled a ‘humiliating backdown’ for Bishop.
Speaking in Auckland, Bishop said the change would shift the focus of intensification toward areas “that make the most economic sense”, including the city centre, around rapid transit stops, City Rail Link stations, and established town and metropolitan centres. He emphasised that the previous two-million figure was a theoretical maximum development capacity, not a construction target, and said the new threshold represents a midpoint between the existing Auckland Unitary Plan’s 1.2 million-home capacity and the higher benchmark introduced when the Government required large-scale uplifts around City Rail Link stations.
The legislation, to be introduced shortly, will give Auckland Council greater flexibility in determining where density should occur, potentially reducing blanket intensification across some suburbs. Bishop said more than 10,000 submissions on Plan Change 120 would remain valid, and Aucklanders would have further opportunities to provide feedback as the council decides which elements to amend or withdraw. He also confirmed an investigation into planning controls in the CBD, signalling the Government could intervene if restrictions are found to be unnecessarily limiting housing and commercial development.
However, the announcement has drawn sharp criticism from Labour and the Greens. Labour deputy leader Carmel Sepuloni described the move as a “humiliating backdown” and claimed it reflected internal tensions within the Government, alleging some MPs were responding to pressure from constituents in established suburbs. She warned the change would create uncertainty for Auckland Council and families seeking affordable housing. Green co-leader Chlöe Swarbrick called the decision harmful and accused the Government of capitulating to property owners at the expense of those locked out of the housing market.
Coalition partners also stopped short of full endorsement. ACT leader David Seymour said the reduction represented “good progress” but insisted his party needed to see the detailed zoning maps before voting in support, arguing that intensification must be consistent and sensible. In contrast, New Zealand First leader Winston Peters welcomed the revised figure, saying it was more realistic and better aligned with future growth patterns, though he acknowledged further improvements could still be made.
The legislative changes will also address a transitional issue affecting around 400 developers and property owners who had relied on the Medium Density Residential Standards before earlier plan changes were withdrawn.
Image credit: Tom Rumble
