Podcast: A referee for the price of land
New Zealand has new planning laws. They passed in September and replace the Resource Management Act. Right at the end, Parliament added something no other country has: a land markets officer.
Think of the officer as a referee. Councils make rules about what can be built and where. If those rules leave too little land for homes, land gets scarce and prices climb. People then expect prices to keep going up, so buyers rush in before they miss out.
The officer will keep a close eye on land prices and check council plans. If a council's rules are pushing prices up, the officer can say so in public. The council must then fix its plan, and do it in good time. Councils still get to choose where new homes go.
In this episode, Eric Crampton and Benno Blaschke are joined by Chris Parker, Director at Principal Economics. They talk about the efforts to help shape the idea. They explain why the officer works a bit like the Reserve Bank, which tries to stop prices rising too fast. They tell the story of the debate in Parliament, when Minister Chris Bishop and Labour's Phil Twyford put party politics aside to make it happen. Then they look at the work still left to do.
Benno also shares why watching it made him proud to be a Kiwi.
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