Learning from New Zealand: A Glimpse into Housing Affordability
Drawing inspiration from Eliza Relmans article titled "America take note; New Zealand has found a solution to reduce housing prices " lets explore the issue of affordable housing and what we can learn from New Zealand.
In a scenario neighborhoods would thrive with a diverse mix of homes, apartments, businesses and public amenities coexisting harmoniously. Rent prices would rise gradually ensuring that housing remains accessible to everyone. However in reality the United States faces challenges in achieving this due to zoning laws that limit construction to single unit homes only.
Initially intended to separate areas from industrial ones these zoning laws have unfortunately been influenced by historical racial biases. As a result they now hinder the growth of cities. To effectively address this issue we must construct millions of homes. One promising solution is "upzoning," which allows for denser constructions such as duplexes and townhouses.
Jenny Schuetz from the Brookings Institute emphasizes that economists widely agree that restrictive zoning leads to housing choices and skyrocketing prices. However there is a glimmer of hope emanating from New Zealand.
New Zealands proactive approach
In 2016 Auckland—New Zealands populous city—faced a housing crisis similar, to the one experienced in the United States.
In response they took action by legalizing homes with a concept of "gentle density." The citys decision not tripled the housing capacity but also yielded positive outcomes. From 2015 to 2020 Auckland experienced an increase in new housing permits going from 6,000 to over 14,300 which helped stabilize housing prices. According to Matthew Maltman, an economist from Australia Aucklands success is not just theoretical but practical. Could be replicated elsewhere. In fact this achievement even prompted New Zealand to implement policies for increasing urban density in 2021.
Meanwhile the United States faces its unique challenges when it comes to urban planning. Wealthy homeowners resist zoning reforms due to concerns about changes and strain on infrastructure. Additionally outdated regulations hinder progress in American cities. However when comparing the histories of planning in both New Zealand and the United States there are similarities that suggest New Zealands approach could serve as a guiding example.
Some cities in America like Denver and Seattle are gradually embracing densely populated housing options. Californias initiative on dwelling units exemplifies this shift as permits for such units have increased fivefold, between 2017 and 2022. Nevertheless it is important to note that progress is not always smooth or straightforward.
The reforms implemented in Minneapolis didn't result in the expected housing development surge as anticipated. Vicki Been, a Deputy Mayor of NYC aptly mentions that while there are challenges associated with the detailed implementation strategies for zoning reforms early victories offer encouragement.
However it's important to understand that upzoning alone can't solve all the problems related to housing availability and affordability. A comprehensive approach involves implementing revised building regulations developing infrastructure expanding services and providing housing subsidies for those with lower incomes. Yonah Freemark from the Urban Institute emphasizes an aspect; simply increasing housing availability isn't sufficient; it's crucial to invest in affordable housing within underprivileged areas.
In conclusion for American cities to truly thrive we must be open, to learning from examples worldwide and adapt accordingly. We shouldn't let current homeowner concerns overshadow the aspirations of generations.
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