New Zealand housing crisis: what’s really going on?

Feature article

New Zealand housing crisis: what’s really going on?

We delve into why our long-running property challenges continue to hold tight.

12 December 2025

Hannah Hilliam
AI

AI summary

New Zealand's housing crisis persists despite recently softened house prices and rents. The core issue is a decades-long supply shortage driven by restrictive planning and infrastructure bottlenecks, disproportionately affecting vulnerable families, renters, and first-home buyers.

The government's Going for Housing Growth policy aims to increase supply by freeing up land and reforming the RMA. While conditions are stabilising, significant affordability challenges remain. Lasting improvement will require sustained action to boost housing supply across the board.

What we’ll cover:

A quick snapshot of the housing crisis

What caused the crisis?

A long term slide in housing supply responsiveness

Affordability pressures

Rents and rental shortages

Who is most affected by the housing crisis?

Children and vulnerable families

A safe, dry home shouldn't be a luxury for our youngest Kiwi. Unfortunately, poor-quality housing is still shaping the health outcomes of thousands of New Zealand children every year.

Māori & Pacific whānau

Renters

First home buyers

What the Government is doing to tackle the housing crisis

Going for Housing Growth is built around three main ideas:

The Government's plan is to tackle the housing crisis by pushing councils to allow cities to grow both up (intensification) and out (expanding the urban fringe).

Flagship planning reform: RMA replacement

Is the housing crisis improving?

What might help solve the crisis long-term?

What this means for buyers, renters, and families right now

For first-home buyers

For renters

For families and vulnerable households

An optimistic future

Author

Hannah Hilliam Hannah Hilliam
Content Writer