National Policy Statement on Urban Development Capacity

The purpose of the National Policy Statement on Urban Development Capacity is to ensure regional and district plans provide adequately for the development of business and housing. This is to enable urban areas to grow and change in response to the needs of their communities.

The National Policy Statement on Urban Development Capacity (NPS-UDC) came into effect on 1 December 2016.

Implementation of the National Policy Statement on Urban Development Capacity

Since December 2016, local authorities in urban areas have been working towards meeting the requirements of the NPS-UDC. From 1 June 2017 local authorities in medium and high growth urban areas will have to begin monitoring market indicators every quarter.

From December 2017, high growth urban areas will also need to prepare housing and business development assessments at least every three years. By December 2018, the same requirement comes into effect for medium growth urban areas.

Together with the Ministry for the Environment (MfE), MBIE has developed the following guidance to support these authorities to carry out these requirements in the NPS-UDC.

Guidance on evidence and monitoring policies

The evidence and monitoring guidance is comprised of six parts:

  • Part one: Introductory guide on evidence and monitoring
  • Part two: Assessing demand and development capacity for housing
  • Part three: Assessing demand and development capacity for business
  • Part four: Business and housing interactions
  • Part five: Monitoring market indicators
  • Part six: Using price efficiency indicators (This part of the guide will be added in September 2017)

 

This guidance is available on the Ministry for the Environment website.

Development feasibility tool

This tool will help councils determine a housing development’s commercial feasibility, using local market information.

The model can be used on a standalone basis to understand the development feasibility of representative sites in specific greenfield or brownfield areas.

NPS-UDC Development Feasibility Tool [XLSX 1.1KB]

Urban Development Capacity Dashboard

The Urban Development Capacity Dashboard provides information on a range of market indicators that local authorities are required to monitor as part of the National Policy Statement on Urban Development Capacity.

Market indicators included on the dashboard are:

  • Residential building consents compared to changes in household numbers
  • Dwelling sales prices
  • Dwelling rents
  • Ratio of dwelling sales prices to rents
  • Dwelling sales volumes as a percentage of total residential stock
  • Land value as a percentage of capital value
  • The Housing Affordability Measure (HAM)

 

Information on the market indicators is presented using a range of dynamic charts and interactive maps. These market indicators provide information to assist giving effect to policy PB6 of the National Policy Statement on Urban Development Capacity (NPS-UDC).

Other sources of data held by councils, published by Statistics New Zealand, or private data providers, can be used to delve deeper into housing market trends or investigate trends in business land markets. The evidence and monitoring guidance outlines how these additional data sources can be used to supplement and enhance the information provided on the dashboard.

The dashboard works best in Chrome.