SR379 Medium-density housing supply and demand analysis (January 2020)

This report summarises the findings of research into the supply and demand for medium-density housing (MDH) in the New Zealand market. The principal types of MDH are illustrated. The drivers of demand are discussed and the capacity of the industry to provide MDH is outlined. The main findings are that MDH units are being built at a rate of about 6,800 per year. This number is expected to grow at about 5% per year through to 2025.

By then, MDH will represent about 35% of all new dwellings. The two main types of MDH units are light-framed units horizontally attached up to 3 storeys in height and concrete/steel-framed units vertically attached 3–6 storeys in height. The former is forecast at about 74% of new MDH and the latter about 26% of new MDH.

The supply side is constrained, especially in Auckland, by shortages of skilled labour, including site management, and council inspection services. Even so, the capacity to build new housing in Auckland is expected to expand by another 30% over the 3 years to December 2018.