Dr Michael Rehm: The 20,000 homes we never built
Inclusionary housing in New Zealand: Auckland's failed experiment and the path forward
Dr Michael Rehm is a property academic at the University of Auckland Business School with over 20 years of experience researching New Zealand's housing market. During the formation of Auckland's unitary plan, Michael was engaged by Auckland Council to conduct feasibility studies and Section 32 analysis for proposed inclusionary zoning provisions. His work involved extensive consultation with developers, planners, and market stakeholders to understand the practical implications of requiring affordable housing in new developments. Through this research, Michael developed deep insights into both the technical mechanics of inclusionary housing and the political challenges of implementing market interventions in New Zealand's predominantly market-driven housing system.
This conversation examines inclusionary housing as a planning tool to address housing affordability for people who can no longer access affordable housing and homes. Michael explains what went wrong with Auckland's earlier attempt at inclusionary zoning, including how developers exploited loopholes and why the absence of long-term stewards like community housing providers caused the initiative to collapse. The discussion explores critical design elements for successful implementation, including transparency requirements, the role of development contributions as incentives, and the need for regulations that ensure affordable units remain accessible across generations rather than becoming windfall gains for lucky individuals. Michael's analysis reveals that if New Zealand had adopted inclusionary zoning nationally in 2016, the country would now have approximately 20,000 perpetually affordable homes, a portfolio equivalent to the current social housing waitlist, that would continue growing year after year.
We'd like to thank Michael for talking time for this in-depth conversation and don't forget to subscribe to the CHA Hub Podcast where ever you get your podcasts from.
This CHA Hub Podcast is sponsored by our Founding Partner, Westpac New Zealand.
