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 softening in house prices and rents. The core issues of chronic undersupply and severe unaffordability, which developed over decades, remain deeply entrenched.

The Government's Going for Housing Growth policy aims to tackle this by freeing up land, enabling urban expansion, and reforming the RMA to boost housing supply.

The crisis disproportionately affects:

- Children and vulnerable families

- Māori & Pacific whānau

- Renters and first-home buyers

While conditions are stabilising, experts agree a full recovery will take years of sustained effort.

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).