Research finds that having an affordable home next door provides wider community benefits with no negative effects

Apr 3, 2017 | Research

This research on inclusionary zoning: 2017.04.03 Inclusionary Zoning SE FINAL prepared by Sense Partners economist Shamubeel Eaqub analysed Queenstown Lakes District house price data from 2008 to 2016. It focused on houses within a 150m radius of an affordable home provided through inclusionary zoning policies, and compared these with other houses in the area, broken down by number of bedrooms and type.

The result was that there was an insignificant impact on house prices as a result of including affordable housing in the local neighbourhood.“Some opposed to including affordable housing in new developments have often argued it brings down the price of the rest of the neighbourhood, says Scott Figenshow, Chief Executive of Community Housing Aotearoa. On the other hand, some argued that it makes the other homes more expensive. This research shows that both of these fears are unfounded.”

Inclusionary zoning requires new developments to provide a component of the homes being built to be affordable for low to middle income earners. The benefit to the community is huge.

New housing development in Queenstown Lakes made possible by inclusionary zoning

Julie Scott, Executive Officer of the Queenstown Lakes Community Housing Trust, reports that the Trust have assisted 139 households to secure homes since April 2008: 110 in Shared Ownership, 7 in Rent Saver, and 22 in Affordable Rental.

“While this is not nearly enough to satisfy current demand, this has played an essential part for high need and working families to remain an integral part of our community – our teachers, police, social workers, tradespeople, front-line hospitality and tourism staff – to name just a few.”

“This report considers the impact of affordable housing on neighbouring properties. We looked at Queenstown which has used a suite of tools in recent years to deliver retained affordable housing, of which inclusionary zoning is one component says report author Shamubeel Eaqub.

“We found no significant variation in house price changes in Queenstown between houses neighbouring affordable properties and control groups. The benefits clearly outweigh any risks,” notes Shamubeel Eaqub.

When used wisely, inclusionary zoning is one of a range of tools to use where there is a mismatch between what the market is delivering and what the local community needs to house its workforce and under-served communities.

“Queenstown Lakes District Council, with developer support, piloted this policy and led the country to show how low-moderate income New Zealanders can get into safe, warm, affordable homes. QLCHT has combined this with shared home ownership and rental programmes so this could happen,” said Julie Scott.

“As a trust, we have been able to match the $14.4 million in land value that came from new developments with $4.8 million grants from the Crown. This has grown now to $28 million invested in homes throughout the district, recycled and retained long term for current and future generations.”

Here’s the research and press release:

2017.04.03 Inclusionary Zoning SE FINAL

Inclusionary Zoning press release 3 April 2017.pdf

Catherine Harris of Stuff reports in the media on April 7.

Recent articles

Annual Report

CHA’s 2020/21 Annual Report

CHA’s 2020/21 Annual Report

Strategic Plan

CHA’s 2022-2023 Strategic Workplan

CHA’s 2022-2023 Strategic Workplan

Featured Network

Residential Tenancies Act Community of Practice

Residential Tenancies Act Community of Practice

Our Place

Our Place Report 2017

Our Place Report 2017

Case Studies

Media Releases

News

How community housing can mend our fraying fabric

NZ's social housing register has quadrupled in size since 2017 and big changes to mindsets over house building and housing affordability are needed, writes Community Housing Aotearoa chief executive Vic Crockford in The Newsroom. Click here to read more. 

Anti-Social Behaviour notes Nov 21

Tenants Protection Association (Chch) Inc. Notes for presentation at Tenancy Management Community of Practice Nov 2021 Anti-Social Behaviour notes Nov 21

Newsletters

Community Housing Aotearoa (CHA) Newsletter 22 August 2022

Welcome new CHA team members, Newsroom opinion piece: Unlocking home ownership, Podcast out now, Our Conference is coming back, CHA Comms lead wins journalism award, Tenancy Management Code of Practice, Research Webinar, Sustaining tenancies or swift evictions? Job...

Community Housing Aotearoa (CHA) Newsletter 8 August 2022

Development Pipeline Platform, Climate Change policy, MBIE and MHUD Building for Climate Change program, Powerful Partners (International delegation visit) Power Housing Australia, Right at Home episode two: Progressive Home Ownership, Council collaboration paves way...

Community Housing Aotearoa (CHA) Newsletter 25 July 2022

We pay tribute to Ricky Houghton's lifetime work legacy, a great  well respected leader a huge loss for our sector and Tai Tokerau community, Acknowledgement and farewell to Bernie Smith another strong leader and advocate all the best on your new journey,...

Community Housing Aotearoa newsletter 11 July 2022

Our CEO Vic Crockford reflects on matariki and the current situation with Covid. Our new Community Housing Aotearoa podcast is out - with the first episode featuring interviews with Dwell Housing Trust and CORT's respective chief executives and Penina Housing Trust...

Community Housing Aotearoa newsletter 27 June 2022

Our CEO Vic Crockford reflects on our past, while looking forward, Dwell Housing Trust's board is recognised for their sterling efforts, new research highlights NZ's ongoing housing challenges. Upcoming events include; the Community Housing Aotearoa MSD Training...

Submissions

Legislation

Reports

Research

Community Housing Aotearoa

Contact Us

Contact Info

Level 11, Ranchhod Tower,
39 The Terrace /
102-112 Lambton Quay
PO Box 11543
Wellington 6142

+04 385 8722

support@communityhousing.org.nz

Follow On