The New Medium-Density Residential Standards in New Zealand
New Opportunities with the New 2022 Standards
In 2022, New Zealand introduced significant changes to its Medium-Density Residential Standards (MDRS), creating new opportunities for property developers, homeowners, and urban planners. These changes are part of the Resource Management (Enabling Housing Supply and Other Matters) Amendment Act 2021, aimed at addressing the country’s housing crisis by enabling higher density housing in urban areas.
What Are Medium-Density Residential Standards?
Medium-Density Residential Standards (MDRS) are rules for building medium-density homes in cities. They aim to use land more efficiently. These standards promote urban growth and help meet the rising need for housing in New Zealand's cities.
Key Changes in 2022
The 2022 changes to the MDRS have simplified the planning process. This makes it easier and quicker to build medium-density housing. Here are some of the key changes:
Increased Building Height and Density: Developers can now build up to three-storeys without needing resource consent.
Simplified Consent Process: The need for resource consent has been significantly reduced, allowing for quicker project initiation and completion.
Broader Application: The standards now apply to more areas, including additional Tier 2 authorities with significant housing needs.
Opportunities for Developers
These changes unlock numerous opportunities for developers and property owners:
Faster Project Turnaround: With reduced consent requirements, developers can start and complete projects more quickly, responding faster to market demands.
Increased Housing Supply: The ability to build more homes on a single site helps address the housing shortage, particularly in high-demand urban areas.
Cost Efficiency: Simplified processes and reduced regulatory hurdles can lower development costs, making projects more financially viable.
Opportunities for Homeowners
Developing Additional Dwellings: Homeowners can now build up to three homes on their property without needing resource consent. This opens opportunities to create rental income and/or accommodate extended family.
Increasing Property Value: Developing additional dwellings can significantly increase the value of a property. This can be helpful if homeowners choose to sell later. In some cases, properties with multiple homes can get better prices.
Subdivision Opportunities: With the simplified consent process, homeowners can consider subdividing their property. This can allow them to sell off portions of their land and/or build additional homes and sell them.
Modernizing and Upgrading: The new standards give homeowners a chance to update their homes. They can add new features or extensions. They can also use sustainable building practices and materials. This can improve the energy efficiency and environmental impact of their homes.
Council Plans
Several councils have published updates to their plans to align with the new MDRS:
Hamilton: Plan Change 12
Tauranga: Plan Change 33 (Read more here)
Waipa: Plan Change 26
Waikato: Variation 3 to the Proposed District Plan
Auckland: Plan Change 78
These plans outline how each council intends to implement the new standards, providing a clear framework for developers and property owners.
How We Can Help
Navigating the complexities of the new MDRS can be challenging, but our expertise ensures that your project complies with all regulations and maximizes its potential. Hiring a consultancy company helps you follow the latest regulations and avoid expensive mistakes. They also provide expert knowledge to improve your development projects.
Our team has over 25 years of experience working with councils in New Zealand. This helps us speed up planning and consent processes. We tailor our services to meet your specific needs, ensuring that your development is both feasible and profitable.
Our goal is to help you unlock the full potential of your property while contributing to the creation of sustainable, thriving urban environments.
Feel free to reach out to us for any queries.
Useful Resources:
Medium Density Residential Standards A guide for territorial authorities July 2022 PDF
Note: This blog post offers general guidance. It should not replace professional advice for your project or situation. For professional advice, please contact our team today.
