A new government for New Zealand: Scope to densify, diversify and deliver?

Abstract

New Zealand confirmed a new government on 24th November, 2023, marking a shift to the right in terms of the political principles which underpin the nation’s governance. The new government is the country’s first three-party coalition since it switched to a mixed-member proportional representation (MMP) system in 1996, following a referendum in 1993.1 It comprises a union between the centre-right National Party, which secured 38 per cent of the votes, alongside the libertarian ACT and populist NZ First parties, which secured 8 per cent and 6 per cent respectively.2 Coalition agreements have been signed but contain little specific detail on housing policy and the new government’s position remains to be clarified. Each constituent party went into the election claiming that more needed to be done, and the National Party, which secured pole position, campaigned on the basis that ‘[e]nding New Zealand’s housing shortage is critical for New Zealand’s future’.3 This paper sets out the circumstances which have contributed to the country’s housing affordability challenges and some of their wider impacts, alongside context on the coalition partners’ statements to date and a series of propositions that might help to address the shortfall in provision – being that the country must focus on how to densify its cities and diversify its housing stock as well as deliver new homes, with three suggested policy areas that may align with the thinking of the new government.