Housing density rules imposed on councils will soon be optional.
Introduced under Labour, our largest cities were directed to allow more townhouses and apartments.
But now the new Coalition Government is giving councils the freedom to choose.
Amanda Watson and her husband purchased a brand-new Auckland apartment off the plans.
The Aalto complex in Morningside has a shared living space with sweeping views of the city.
"Everyone in big cities across New Zealand have always lived a certain way," Watson told Newshub.
"Apartment living has really started booming in the last few years, but for people of my age - young, working professionals - this is a really lovely way to live."
The six-storey development, built by developer Ockham Residential, has no car parks.
"What we do is we work closely with railway stations and bus lines so that people don't have to be driving to work," said William Deihl, Ockham's CEO.
"Walking distance from the train and buses are really easy," Watson said.
It's a good example of housing intensification - building up, not out.
The previous Labour Government introduced new rules for councils to enable building up in two parts.
New Medium-Density Residential Standards (MDRS) allowed for three homes to be built, up to three storeys high, such as townhouses, without resource consent.
And a new National Policy Statement on Urban Development (NPSUD) enabled more apartment blocks along public transport corridors.
"That law suits us really well," Deihl told Newshub.
But the new Government plans to make the MDRS townhouse rules optional for all councils.
Housing Minister Chris Bishop told Newshub if councils do opt out, they'll be expected to zone land for 30 years worth of housing demand.
If it was up to ACT, councils would be allowed to pull out of all the new rules.
"I would put the MDRS and the NPSUD in the same basket," said ACT leader David Seymour.
Under former leader Judith Collins, National controversially worked with Labour to develop the medium-density rules. But when Christopher Luxon took over, the party back-tracked.
"It's been clear from both councils and communities up and down the country that there are some changes we can make," Luxon said in May 2023.
Now, a new law is being written.
"When Wellington puts its big thumb on the scale and says you've got to build over there or you can't control where the building goes, that makes the miscoordination of consents and buildings worse," Seymour said.
Auckland Mayor Wayne Brown told Newshub: "We don't need rigid rules imposed on us that lack the flexibility to deal with local circumstances."
And Hamilton City Council gave a similar response, saying a "blanket approach to housing intensification isn't right for the city".
But Deihl believes councils need the push to build up to stop urban sprawl and encourage public transport.
"I definitely think they should be forced to get the density up within the cities," he said.
"I think up is the answer," said Watson.
Now building up will be for councils to decide.
