Big squeeze between cities
Towns between Hamilton and Auckland are crying out for more land and houses for the decades ahead, as population is set to rapidly climb.
Waikato District, between Hamilton and Auckland, will need nearly 9000 new houses by 2031, as up to 19,000 more people are projected to move there.
Po¯ keno has already transformed from a sleepy settlement to a sprawling town, while Nga¯ ruawa¯ hia, north of Hamilton, is in demand for its new housing developments.
Meanwhile, the district’s mayor has lambasted a regional council boss for opposing a billion dollar development that could add over 1000 affordable homes to the current shortage.
Between 7400-8700 houses are needed in Waikato by 2031, according to projections from Waikato University.
And a recent policy statement from the Government means the highest growth councils need to have spare residential land up their sleeves – 20 per cent above market demand.
At this week’s meeting, councillor Noel Smith asked staff whether the council was prepared.
‘‘We hear the concerns of the Government, of the development community, and the people who wish to have homes. Are we at serious risk of having an under supply of zoned residential units in our plan? Essentially, do we need to respond quicker?’’
Council’s analytics manager Mark Davey told Tu¯ a¯ kau and Po¯ keno doesn’t currently have enough residential land supply in the next 10-30 years to accommodate growth.
Part of the problem can be solved when commissioners consider setting aside more land for housing in upcoming re-zoning hearings. But that’s not a given to meet all the demand – the infrastructure to cater for growth must also be in place.
Waikato University associate professor of economics Michael Cameron told Stuff there had been ‘‘rapid’’ growth in Waikato District in the last 10 years, which he expects to continue. In the last decade, the population grew by 27 per cent, or 18,647 people.
‘‘In relative terms, Waikato has been one of the districts experiencing the fastest population growth in New Zealand.
‘‘We’ve projected growth faster than Statistics NZ, and the growth has even overtaken our own projections,’’ Cameron said.
Most of that growth has been from Aucklanders spilling over the Bombay Hills into Po¯ keno, and Cameron tipped that town to keep growing faster.
‘‘There’s a lot of emphasis on central Auckland, but a lot of growth and industry is happening in the South. You can see it when you drive along the motorway. Drury is growing, Pukekohe is growing and Po¯ keno is growing.’’
But Waikato District Mayor Allan Sanson said the South of the district is in demand as well.
New housing developments on Great South Road and River Road in Nga¯ ruawa¯ hia have been progressing quickly, he said.
Davey said rising house prices in Nga¯ ruawa¯ hia meant demand for housing in Huntly was increasing too.
Data from REINZ shows Waikato District’s median price had risen to $648,000 in November 2020, compared to $585,000 in November 2019.
Sanson maintains the council is dealing with growth as quickly as it can, the biggest obstacle being the Resource Management Act.
‘‘If you want a land use change you are talking one to three years, that’s ridiculous.
‘‘You should be able to apply for a re-zoning to residential and have the decision within 6 months.’’
Sanson supports another 1100 affordable homes in the district through Sleepyhead’s proposal for a mega industrial community in O¯ hinewai.
The decision on a large foam factory has been fast-tracked by central Government, but the rezoning for the affordable housing is still being decided.
The plan’s faced major opposition from Waikato Regional Council chair Russ Rimmington, who’s said the housing should be based in Huntly, not O¯ hinewai.
Sanson said he ‘‘can’t understand’’ Rimmington’s opposition.
‘‘Housing is the key point to the whole thing.
‘‘If you go to Huntly and talk to the local people – and they can see potential for jobs and housing in the plan – they just don’t get his opposition to it.’’
But Rimmington told despite the district’s growth demands, the land at O¯ hinewai was low-lying, prone to flooding and lacked surrounding infrastructure.
‘‘That land is totally unsuitable for housing.’’