Housing affordability is one of the key factors that contribute to New Zealand’s cost-of-living crisis. The high cost of housing is also one driver of New Zealander’s high level of private indebtedness and an issue of intergenerational equality.
The Initiative’s research into housing affordability takes a different approach to the usual proposals of either just freeing up land and dropping regulations or compelling a reluctant population to live in high-density estates.
Instead, our research focuses on the context in which development takes place: local government. We examine the link between local government finance, and the incentives for local councils to develop land for housing.
There is a missing link between discussions of housing affordability (or rather a lack thereof) and finding workable financing management that allows local government to fund required infrastructure upgrades. We propose to close this gap with our research project examining international best practice.
Political decision-making in New Zealand is among the world’s most centralised. This is not necessarily a problem, but poor incentives combined with little local power can lead to weak local government performance. Local government has jurisdiction over a relatively small range of activities. At the same time, it is subject to expensive central regulatory mandates.
Our research investigates the role of local government in both New Zealand and abroad. What helps local government work well? How can appropriate incentive structures align council interests with those of the country? Can local governments encourage growth rather than constantly be at loggerheads with central government over the pace of consenting?
Is New Zealand a country in decline or a quiet success story? A new report from The New Zealand Initiative argues it is neither. Read more
The Government wants to merge New Zealand’s councils into a smaller number of big councils. A new report from The New Zealand Initiative says this is the wrong fix. Read more
1. INTRODUCTION 1.1 The New Zealand Initiative welcomes the opportunity to submit on the Better Regional Boundaries Bill. Read more
New Zealand cannot build enough houses because councils cannot afford the pipes and roads that new suburbs need. That is the conclusion of a new report by The New Zealand Initiative. Read more
This is The New Zealand Initiative’s 2026 Prescription for Prosperity. Since 2017, the Initiative has prepared a briefing for the incoming government. Read more
In this episode, Michael talks with Oliver Hartwich, Executive Director of the New Zealand Initiative, about two new reports, New Zealand by Comparison and New Zealand by Numbers, which chart how New Zealand measures up against 28 other countries and how it has changed over recent decades. They discuss why a country that attracts migrants from around the world keeps losing so many of its own people, how Australia matches New Zealand on almost everything but the economy, the Eastern European economies closing in, and wellbeing rankings that still sit near the top of the world but are slipping. Read more
Wellington (Wednesday, 22 July 2026) – Two weeks ago, New Zealand by Numbers asked whether New Zealand was improving. A new report from The New Zealand Initiative asks a harder question: is it keeping up? Read more
Dr Oliver Hartwich talked to Mike Hosking on Newstalk ZB about the New Zealand Initiative's new report tracking the country's progress across more than 100 measures. Dr Hartwich explained that gains like fewer road deaths and longer life expectancy have happened almost automatically through better technology and medicine, while the areas that need bold reform, such as housing affordability and productivity, keep lagging, with Erica Stanford's education changes a rare exception. Read more
Wellington (Wednesday, 8 July 2026) – Is New Zealand a country in decline or a quiet success story? A new report from The New Zealand Initiative argues it is neither. Read more
Local government reform has turned into a numbers game. The government’s ‘Head Start’ asks how many councils we should have, and where the lines between their jurisdictions should be drawn. Read more