Guidance on evidence and monitoring policies

Together with the Ministry for the Environment (MfE), MBIE has developed the following guidance to support councils of high and medium growth urban areas to prepare housing and business development capacity assessments, monitor market indicators and use price efficiency indicators.

The evidence and monitoring guidance is in 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 guidance is available on the Ministry for the Environment’s website. It should be read alongside the Development feasiblity model and Dashboard of indicators (below).

Development feasibility tool

This spreadsheet model can help councils determine how much development capacity, enabled in their plans and taking costs and revenues into account, would be feasible for a developer to develop. 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 a range of market and price efficiency indicators that local authorities are required to monitor and use when implementing 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)

 

Price efficiency indicators included on the dashboard are:

  • Price-cost ratios, which compare the extent to which construction costs or land costs contribute to house prices
  • Rural-urban differentials for residential land
  • Industrial zone differentials
  • Land ownership concentration indicators (to be added soon)

 

Technical reports describing how the price efficiency indicators were derived are available here:

  • Price-cost ratios [PDF 447KB] - This technical report describes the methodology and data used to construct price-cost ratios for housing in urban places, for the NPS-UDC. Price-cost ratios show the extent to which house prices are driven by construction costs versus the cost of land (infrastructure-serviced sections).
  • Rural-urban differentials [PDF 2.1MB] - This technical report sets out the approach to calculating land value differentials across rural-urban zoning boundaries for urban areas in New Zealand.
  • Industrial zone differentials [PDF 1.3MB] - This technical report sets out the approach to calculating land value differentials across industrial zone boundaries for urban areas in New Zealand, and presents the results of this analysis for five high-growth urban areas: Auckland, Christchurch, Hamilton, Tauranga, and Queenstown.
  • Land ownership concentration indicators (to be added soon) - This technical report sets out the approach to developing an experimental set of indicators of land ownership concentration for urban places in New Zealand.

 

Other sources of data held by councils or published by Statistics New Zealand or private data providers, can also be used to delve 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.