Government backs down over PC120 housing plan

The Government has backtracked on its push for housing intensification in Auckland that required the city to have up to two million dwellings, as detailed in the contentious proposal known as Plan Change 120, or PC120.

Housing and RMA Reform Minister Chris Bishop made a major speech on the issue in Auckland this morning, to the Committee for Auckland, at the recently opened New Zealand International Convention Centre.

He says the Government will amend the Resource Management Act to reduce the minimum housing capacity required for Auckland Council’s PC120 from just over two million homes to 1.6 million homes.

“Housing growth in Auckland is critical to fixing our housing crisis, driving growth and raising living standards, the central mission of this Government,” he says.

“The changes I’m announcing today will make sure Auckland grows in the areas that make the most economic sense and where there is strong support for growth – the city centre, around stations benefiting from investment in the City Rail Link, around rapid transit stops, and in and around town, local and metropolitan centres.

“Aucklanders have been clear that they want housing growth – in the right places and where infrastructure can support it. Today’s changes show the Government has listened to Aucklanders.

“The Auckland Unitary Plan allows development capacity of around 1.2 million homes, while Plan Change 120 currently allows capacity of around two million homes.

“The Government’s changes, to be made via legislation in the near future, reduce the minimum capacity required to the mid-point between 1.2 and two million.

“The journey of how we got to this point is a long and complicated one.

“When the coalition Government came to office, Auckland Council asked the Government to let them withdraw Plan Change 78, which implemented the Medium Density Residential Standards (MDRS) across Auckland.

“The Government campaigned on allowing the council to withdraw from using the MDRS, and so the law was changed in 2025 to allow the Council to develop a new plan (Plan Change 120).

“As part of allowing the council to do that, the Government required the new plan to allow large uplifts in development around stations benefitting from investment in the City Rail Link, and provide at least the equivalent amount of capacity as Plan Change 78 (around 2 million homes).

“The two million number was never a build target. It is technical capacity figure based on theoretical maximum development if every site is fully developed, which obviously never happens.

“It is clear from listening to Aucklanders that the legislative requirements on the council meant they had very little room to respond to concerns raised through more than 10,000 submissions on Plan Change 120.

“Today’s announcement gives the council much more flexibility about where density goes in Auckland.

“The council will still be required to give effect to the National Policy Statement on Urban Development, including enabling greater development around rapid transit stations and the City Rail Link, but after meeting those requirements, they have real flexibility.

“In practical terms, this is likely to mean less blanket intensification in some suburbs and more growth focused around the city centre, town, local and metropolitan centres, as well as rapid transit and stations benefiting from investment in the City Rail Link.

What this means for Aucklanders

Legislation will be introduced and progressed quickly to minimise disruption to the existing process.

“Plan Change 120 has already received more than 10,000 submissions. Those submissions remain valid,” Bishop says.

“If parts are withdrawn, the existing Auckland Unitary Plan zoning will remain in place.

“For parts that continue, updated provisions and maps will be provided to the hearings panel, and Aucklanders will have further opportunities to provide feedback.

“This process will be transparent and Aucklanders will be able to have their say.

“I have also initiated an investigation into Auckland Unitary Plan provisions affecting the city centre.

“Auckland’s CBD is the economic heart of New Zealand. While previous reforms increased capacity there, we know there is still significant unrealised potential.

“If planning controls are unnecessarily constraining housing and business development in the city centre, I am prepared to act, using the same powers I used recently to change the Auckland Unitary Plan relating to Eden Park concert restrictions.

“Any additional housing enabled there will count toward the requirement to enable at least 1.6 million homes.

“The legislation will also resolve a transitional issue affecting approximately 400 developers and property owners who were relying on the Medium Density Residential Standards when an earlier plan change was withdrawn in 2025.

“Auckland is New Zealand’s economic capital. We are not backing away from growth.

“We are ensuring growth happens in the right places, in a way that Aucklanders can support.

“We can increase housing supply, protect the liveability of our suburbs, and strengthen the city centre at the same time.

“This change allows us to do all three. It’s all part of our drive to fix the basics and build New Zealand’s future.”