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

AI summary

New Zealand's housing crisis persists despite recent price and rent softening. Decades of undersupply and restrictive planning have created severe unaffordability, disproportionately affecting renters, first-home buyers, and Māori & Pacific whānau.

The government’s Going for Housing Growth policy aims to free up land, reform the RMA, and enable urban density. While conditions are stabilising, long-term solutions require sustained action on land supply, infrastructure, and faster consenting to truly resolve the ongoing housing challenges.

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).