Urban Development News from the media | 24 June 2025 | Government to give itself power to override councils on housing in RMA changes

Government Seizes New Override Powers in RMA Shake-up

In the most significant policy development of the week, the government has moved to grant itself direct override powers within the Resource Management Act (RMA), enabling it to overrule local councils on decisions deemed to negatively impact economic growth, development, or employment. This new provision, set to be added to the RMA amendment legislation currently before Parliament, marks a fundamental departure from the RMA's traditional devolution of power to local authorities.   

Housing and RMA Reform Minister Chris Bishop has justified the move by accusing local government of being one of the largest barriers to housing growth, stating, "The RMA's devolution of ultimate power to local authorities just has not worked". The government argues that because it bears the multi-billion dollar annual cost of housing subsidies—a direct result of a "failed planning system"—it is justified in taking a more hands-on role to ensure councils facilitate development. This override power is intended as an interim measure while the government completes its full replacement of the RMA, expected in 2027. This move fundamentally alters the balance of power in New Zealand planning, shifting the ultimate authority on key development decisions from local councils to central government ministers.

https://www.rnz.co.nz/news/political/564457/government-to-give-itself-power-to-override-councils-on-housing-in-rma-changes

Auckland's Intensification Plan Reset by Ministerial Decree

The government's new interventionist stance has been immediately applied to New Zealand's largest city. As part of the Resource Management (Consenting and Other System Changes) Amendment Bill reported back from the Environment Committee, Auckland Council will be allowed to withdraw its highly contentious intensification plan, Plan Change 78 (PC78). However, this is not a return to the status quo.   

The legislation comes with strict new conditions. The council is now mandated to notify a replacement plan change by October 10, 2025. This new plan must enable housing capacity equal to or greater than PC78 and, crucially, must allow for development of at least six stories around key City Rail Link (CRL) stations, including Maungawhau (Mount Eden), Kingsland, and Morningside. The Bill also formally abolishes the one-size-fits-all Medium Density Residential Standards (MDRS) in Auckland, replacing it with a more targeted approach to density along key transport corridors. This represents a direct legislative instruction from Wellington on the future shape of Auckland's urban form, tying development explicitly to the government's multi-billion-dollar investment in transport infrastructure.   

https://www.rnz.co.nz/news/national/564561/auckland-council-says-100-000-new-homes-built-after-planning-rule-book-came-into-force

Landmark "Housing in Aotearoa 2025" Report Reveals a Divided Reality

Providing critical context to the government's policy interventions, Stats NZ on June 17 released its comprehensive "Housing in Aotearoa New Zealand: 2025" report. The data paints a complex and often contradictory picture of the nation's housing situation.   

For the first time since the 1990s, the report shows a slight increase in the homeownership rate, which rose from 64.5% in 2018 to 66.0% in 2023. This has been attributed to factors including low interest rates during the pandemic and a recent surge in house building.   

However, the report also underscores persistent and deep-seated problems. Housing affordability remains a critical issue, with nearly half (45.9%) of all renting households spending 30% or more of their income on housing costs. Household crowding has increased, and significant inequalities remain, with Māori and Pacific peoples, in particular, experiencing poorer housing outcomes, higher rates of crowding, and homelessness. The report highlights that tenure is one of the most significant markers of inequality; those who do not own their home face less security, poorer affordability, and worse housing conditions. This data serves as the factual backdrop against which the success or failure of the government's new housing policies will be measured.   

https://www.stats.govt.nz/reports/housing-in-aotearoa-new-zealand-2025/

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