In May 2022, the government issued its National Policy Statement on Urban Development, encouraging councils to rezone land in high-demand areas to enable denser housing.
Not all councils were on board. Christchurch City Council, for example, favoured a bespoke rather than centrally imposed approach, with a strong focus on collaborative planning with neighbouring councils.
Nevertheless, the growth in multi-unit dwellings – townhouses and apartments – in our main centres is unmistakeable.
The drivers behind the trend
Where is multi-unit growth occurring, who is buying and/or living in multi-unit dwellings and what are the considerations for future growth?
These questions lay at the heart of a Levy-funded research project recently undertaken in Greater Christchurch by Livingston and Associates. Using census data and interviews with stakeholders and residents, the study analysed changes in households, their dwelling typologies and vehicle ownership.
Who’s choosing multi-unit living?
The research found strong growth in the number of Greater Christchurch households living in multi-unit dwellings – up 11,561 between 2018 and 2023. Households living in stand-alone dwellings increased by 1,776.
While growth occurred across Greater Christchurch, the increase was particularly notable in Christchurch City – the majority occurring in the inner-city suburbs.
The number of both owner-occupier and renter households living in multi-unit dwellings grew strongly. During the same period, the number of owner-occupiers living in stand-alone dwellings increased by 8,751 while the number of renters living in stand-alone dwellings fell by 6,972.
The research gleaned several notable insights:
- Owner-occupiers aged 65 years and older dominated growth in the number of owner-occupier households living in multi-unit dwellings.
- Renters aged younger than 40 years dominated growth in the number of renter households living in multi-unit dwellings.
Despite the growth, the study’s authors say they discerned a strong and persistent preference for stand-alone dwellings.
Barriers to intensification
The research also investigated constraints on the housing system – regulation, planning, consenting and financing – that are likely to affect future multi-unit developments.
Car ownership was noted as an important factor when considering multi-unit living.
Planning for success
The study sought insights to inform the debate housing intensification and improve understanding of the interaction between population growth and housing demand by location, typology and tenure.
Stakeholder insights to overcoming the challenges:
- Provide a clear plan and consistent messages about the community benefits and long-term outcomes.
- Make timelines and funding plans realistic to support infrastructure and amenities.
- Develop projects that exemplify good design and integration.
- Ensure robust public and alternative transport options.
- Consider transitional car parking options in central city areas.
Recommendations for local authorities
The study also made recommendations for local authorities at the system level:
- Establish clear planning and regulatory frameworks.
- Provide pre-application support at the design stage of larger projects to reduce the risk of delay upon formal submission.
- Ensure the phased development of social and cultural amenities to both encourage and support intensification goals.
- Consider value-capture mechanisms where public investments increase the value of surrounding privately owned land.
- Consider consolidating land parcels for priority sites and provide an inventory of publicly owned lands.
- Provide incentives such as development contribution deferrals and remissions, priority processing for consents and targeted rates rebates.
The researchers also identified actions that will help to ensure good outcomes for the people living in multi-unit dwellings and the surrounding neighbourhoods and communities. These focus on the needs of occupants, who are typically older, lower-income and single:
- Incentivise affordable 1 and 2-bedroom dwellings close to amenities.
- Incentivise homes that meet universal design criteria.
- Advocate for central government policies and funding that support lower-income households.
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ER117 The demographics and drivers of intensification in Greater Christchurch – Stage two