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
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
Housing targets have long been a political football. They are also an emotional political subject. 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
Wellington (Tuesday, 30 June 2026) – 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
Before anyone can build a house in New Zealand, someone must pay for the pipes and the roads that connect a development to the city. While this seems like a minor detail, it is a central issue for housing affordability. Read more