New Tauranga Housing Accord signed

The new Tauranga Housing Accord has been signed by Tauranga City Mayor Greg Brownless and Minister for Building and Construction Dr Nick Smith.

The Housing Accord is an agreement with the Government to work together to address housing supply issues, notably by identifying and fast-tracking development in Special Housing Areas. Special Housing Areas help accommodate the fast-paced growth of our city by bringing more housing to the market faster, in areas where there is already suitable infrastructure in place or plans for it to be built. 

With the signing of the new Accord, developers are now able to approach Tauranga City Council for a further three years with requests to consider new Special Housing Areas.

Over the two years covered by the previous Accord, 11 Special Housing Areas were established, with a total potential yield of 2,970 dwellings – far exceeding the target of 1,400. As of October 2016, a total of 989 new sections had been consented and 198 building consents issued, with more applications in the pipeline.

The new Tauranga Housing Accord sets revised targets for land and housing supply, as below:

  2017 2018 2019
Residential sections 1,500 - 1,600 1,550 - 1,650 1,600 - 1,700
New dwelling consents 1,700 - 1,800 1,750 - 1,850 1,800 - 1,900

This compares to 1,479 sections created and 1,663 new dwelling consents issued in 2016 (actual to October and projected to December), the local building industry's most buoyant year since 1997. The targets are premised on current market conditions remaining similar over the following three years. Should there be a change in the market conditions or other relevant factors, these targets may be reviewed and new targets agreed between the Government and the Council.

Mayor Greg Brownless says the continued implementation of the Tauranga Housing Accord is an important way for council to support the provision of more affordable housing.

“Tauranga has issues related to housing affordability. The median house price is now 7.45 times the value of the median income. To be considered affordable I'm told this should be 3 or less” says Greg. 
“Housing affordability is a complex issue that requires consideration of wider issues, all of which this Accord doesn't address. 

“What the Accord will do is assist in providing a well-functioning housing market with sufficient housing supply to meet the demand.”


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