The Finance Minister admits some investors might use the proposed no-consent "granny flat" policy to get a bit more cash.
On Monday, the Government opened consultation on a plan that would allow people to build up to 60sqm on their property without consent.
Speaking to AM on Tuesday, Finance Minister Nicola Willis said the changes would be useful for Kiwi families.
"There are lots of families who, for whatever reason, want to help accommodate someone and don't want them in the house - but do have space in the backyard," she told host Melissa Chan-Green.
Willis said "some" investors might use the changes to make more money but noted New Zealand had been in a housing crisis for some time.
"So, if we're putting more roofs over more heads, I think that's a good thing," she added.
"Obviously, we do want to make sure that where housing's being built is a safe place... but, in general, there's so much red tape in this area - it can cost literally thousands and thousands of dollars just to get the consents to just put a granny flat in your backyard.
"We think that's silly; we want to get rid of some of that red tape [and] make this easier for people."
The proposed changes were part of National's Coalition agreement with NZ First, promising to "amend the Building Act and the resource consent system to make it easier to build granny flats or other small structures up to 60sqm".
After the announcement on Monday, acting Prime Minister and NZ First leader Winston Peters said making it easier to build granny flats would "make it more affordable for families to live the way that suits them".
Speaking alongside Peters at Monday's post-Cabinet press conference, Chris Bishop said the changes would fit "within the Government's wider package of work to streamline the building consent system and address the housing crisis".
"Removing this red tape will not only speed up the build process - it's estimated to also save up to $6500 just in the standard building and resource consenting fees per build," the Housing Minister said. "Not to mention, of course, the savings in time and resource."
