The latter has been a longer-term issue and is due to a complex range of factors including: a scarcity of suitable land; restrictive planning regulations; a lack of coordination in infrastructure planning; and a fragmented and inefficient building industry. There have also been bottlenecks in the construction sector with both Christchurch and Auckland competing for resources.
An  12  BIS central bankers’ speeches  acceleration in new credit commitments since September has facilitated the growth of house sales and prices over this period. Supply-side policy solutions are unlikely to yield quick results. The proposed RMA reforms could significantly improve the planning process but could take years to be felt in new supply.