Stalled Auckland housing projects leave limbo 

Government intervention clears path for Auckland housing projects stalled more than a year ago 

Hundreds of Auckland housing developments can now proceed after the Government used powers under the Resource Management Act (RMA) to resolve unintended consequences created by the city’s shift away from national density rules. 

The issue arose after Auckland Council withdrew Plan Change 78 (PC78) – which included Medium Density Residential Standards (MDRS) – and replaced it with a new framework known as Plan Change 120 (PC120). 

The transition created a regulatory gap affecting hundreds of projects that had relied on the MDRS rules to proceed without needing resource consent. 

Around 400 developments were left unable to continue construction as a result. 

Density rules withdrawn during planning transition 

PC78, made law in August 2022, allowed three-storey buildings with up to three dwellings on many residential sites across Auckland without requiring resource consent. 

However, after the Government signalled it would allow councils to opt out of MDRS requirements in January 2024, Auckland Council chose to withdraw PC78 and instead develop PC120 – a broader housing plan that also addresses environmental risks such as flooding. 

That decision created an unexpected problem for projects already underway. 

Auckland Councillor Richard Hills told RNZ the issue arose because developments meeting MDRS were treated as a permitted activity, but they lost that status once Auckland Council moved away from PC78. 

He said the nature of permitted activities meant those projects had no formal consent to fall back on. 

“Because something is permitted, it doesn’t have a consent, and when you remove the allowance for the permitted activity, those projects are left without a consent.” 

The situation left hundreds of property owners and developers unable to continue building when the planning framework changed in October 2025, and those projects have been in limbo since then.  

Government uses RMA powers to resolve issue 

To address the problem, the Government intervened using powers under the RMA. 

Resource Management Act Reform Minister Chris Bishop invoked section 360J of the legislation, which allows the Government to modify how planning rules apply in certain circumstances. This allows the council to use section s87BB of the RMA, which allowed paused projects to proceed until PC120 was enshrined in law. 

The intervention effectively restored the ability for affected developments to proceed. 

New housing plan still progressing 

While the immediate issue affecting stalled developments has been resolved, Auckland Council is continuing work on PC120, which will shape how housing growth occurs across the city. 

The new plan aims to enable housing capacity while strengthening planning controls around natural hazards. 

Auckland Council has said stronger planning rules are needed following severe flooding events in 2023, which exposed risks associated with building in flood-prone areas. 

“The plan change strengthens the council’s approach to managing natural hazard risk while still enabling growth in the right places,” the council said in an explainer on the proposal. 

Submissions on PC120 opened in late 2025 and the plan will go through the statutory planning process before becoming part of Auckland’s planning rules.  

In the interim, new developers will need to apply for a resource consent under PC120 rules, according to an Auckland Council PC120 FAQ document. 

“PC120 rules apply with immediate legal effect from 3 November 2025 in addition to Auckland Unitary Plan rules.” 

The document added that when deciding whether to approve a resource consent application, or what conditionals may be appropriate, the council must consider both the Auckland Unitary Plan provisions and PC120 provisions (like policies), even though most rules and standards do not apply immediately. 

“When the Auckland Unitary Plan and PC120 policies propose different outcomes, a weighting exercise may need to be carried out to confirm the most appropriate outcome.” 

Council welcomes resolution 

Auckland Council says the Government’s intervention provides clarity for affected property owners. 

Auckland Council Head of Resource Consents James Hassall told Stuff the council supported the approach. 

“Auckland Council welcomes this approach and acknowledges that the changes created uncertainty for some consent holders,” Hassall said. 

“Planning rules change regularly due to private and council plan changes, and so the consents team will work with applicants on amendments to their proposals as they usually would.” 

The intervention allows projects that were caught in the planning transition to move forward, while the longer-term framework under PC120 continues to be developed.