Govt Cuts Auckland Housing Capacity Target to 1.6 million Homes

The Government says the revised settings will sharpen Auckland’s growth pattern, concentrating development in areas with strong economic logic and infrastructure support.

The Government will move swiftly to amend the Resource Management Act (RMA) to lower the minimum housing capacity requirement for Auckland Council’s Plan Change 120 from just over 2 million homes to 1.6 million homes, Housing and RMA Reform Minister Chris Bishop has announced.

The decision represents a significant recalibration of Auckland’s intensification framework, aimed at focusing growth in areas with strong infrastructure support while easing blanket density requirements in some suburbs.

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Resetting the Capacity Requirement

Under existing legislative settings, Auckland Council was required to enable development capacity for around 2 million homes under Plan Change 120 — a figure Mr Bishop emphasised was never a construction target, but a “theoretical maximum” based on every site being fully developed.

For context:

• The Auckland Unitary Plan currently provides capacity for approximately 1.2 million homes.

• Plan Change 120 lifted that to around 2 million homes.

• The new legislative amendment will reduce the minimum required capacity to 1.6 million homes, effectively the midpoint between the two.

“The 2 million number was never a build target. It is a technical capacity figure based on theoretical maximum development if every site is fully developed, which obviously never happens,” Mr Bishop said.

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Focus Growth Around Transit and Centres

The Government says the revised settings will sharpen Auckland’s growth pattern, concentrating development in areas with strong economic logic and infrastructure support.

Growth will continue to be prioritised:

• In and around the city centre (CBD)

• Around City Rail Link (CRL) stations

• Near rapid transit stops

• In and around town, local and metropolitan centres

“Housing growth in Auckland is critical to fixing our housing crisis, driving growth and raising living standards,” Mr Bishop said.

“The changes I’m announcing today will make sure Auckland grows in the areas that make the most economic sense and where there is strong support for growth.”

The Council will still be required to give effect to the National Policy Statement on Urban Development, meaning intensification near rapid transit and key centres remains mandatory. However, once those requirements are met, Auckland Council will have significantly greater discretion over where additional density is located.

In practical terms, this is expected to mean less blanket intensification across some established suburbs and a stronger emphasis on transit-oriented and centre-focused growth.

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Responding to 10,000+ Submissions

Plan Change 120 has already attracted more than 10,000 public submissions, reflecting strong public engagement and widespread debate over intensification.

Mr Bishop said the previous legislative requirements left the Council with “very little room” to respond meaningfully to concerns raised during consultation.

“Today’s announcement gives the Council much more flexibility about where density goes in Auckland,” he said.

Submissions already lodged will remain valid.

Once the amended capacity requirement is enacted:

• Auckland Council will determine which parts of Plan Change 120 to withdraw or amend.

• If sections are withdrawn, the existing Auckland Unitary Plan zoning will remain in place.

• For retained sections, updated provisions and maps will go before the independent hearings panel.

• Aucklanders will have further opportunities to provide feedback.

“This process will be transparent and Aucklanders will be able to have their say,” Mr Bishop said.

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Investigation Into CBD Planning Controls

In parallel, the Minister has initiated an investigation into planning provisions affecting Auckland’s central business district.

“Auckland’s CBD is the economic heart of New Zealand. While previous reforms increased capacity there, we know there is still significant unrealised potential,” Mr Bishop said.

If unnecessary planning constraints are identified, the Government may intervene using the same powers recently exercised to amend Auckland Unitary Plan provisions relating to Eden Park concert restrictions.

Any additional housing enabled in the CBD would count toward the new 1.6 million-home requirement.

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Resolving Transitional Issues for Developers

The legislation will also address a transitional issue affecting approximately 400 developers and property owners who had relied on the Medium Density Residential Standards (MDRS) before an earlier plan change was withdrawn in 2025.

When the coalition Government came to office, Auckland Council sought to withdraw Plan Change 78, which had implemented MDRS across the city, and to “downzone” areas affected by flood risk. The Government subsequently amended the law in 2025 to allow the development of Plan Change 120, while imposing the 2 million-home capacity requirement.

The new legislative change recalibrates that framework while maintaining mandatory intensification around CRL stations and rapid transit.

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Growth, But “In the Right Places”

Mr Bishop rejected suggestions the Government was stepping back from growth ambitions.

“Auckland is New Zealand’s economic capital. We are not backing away from growth,” he said.

“We are ensuring growth happens in the right places, in a way that Aucklanders can support.

“We can increase housing supply, protect the liveability of our suburbs, and strengthen the city centre at the same time.”

The RMA amendment legislation will be introduced and progressed quickly to minimise disruption to the existing planning process.