NZ’s billion-dollar development opportunity to build our cities around public transport

The country has already invested billions in rapid transit, including Auckland’s $5.5 billion City Rail Link, but in his report Station Cities: UK lessons for building cities around public transport, Mr Nash says most new housing is still being built far from train and bus corridors. This leaves well-connected land underused and public infrastructure delivering only a fraction of its potential return. Only a quarter of new homes in Auckland are located within walking distance of rapid transit, even though rapid transit corridors are identified as priority growth zones.

Mr Nash, who is delivering his recommendations at two events across Auckland and Wellington in June, says New Zealand has the policies and long-term development plans in place, but nobody has the dedicated mandate to make them happen.

Currently responsibilities and land holdings related to city development around transport stations and corridors in our major cities is split across multiple agencies, which meansthere is no single organisation with the mandate, land and tools to make it happen.

“If you take a station precinct in Auckland, you might have KiwiRail holding corridor and station land, Auckland Transport managing station operations, Auckland Council exercisingplanning authority, Kāinga Ora operating as a housing developer, Waka Kotahi managing state highway interfaces, and private landowners with control over big chunks of the land. Nobody is in charge of the whole precinct.”

Research cited in the report shows that infrastructure for central city housing can cost seven times less than comparable development on city fringes development, at a time when New Zealand faces a $210 billion infrastructure deficit and rising fiscal pressure.

“This fragmentation is having significant financial consequences. Building new housing on the urban fringe requires expensive new roads, pipes and infrastructure, while development near existing transport networks can dramatically reduce those costs.”

“Concentrating development around transport hubs also boosts productivity, lowers emissions and enhances access to jobs and services.”

Mr Nash has spent the past six months studying transit-oriented development in UK cities where public transport and development are being actively integrated.

“Cities such as Birmingham, Bristol, Cambridge and Stockport have used coordinated governance, long-term funding and dedicated delivery agencies to transform underused station precincts into dense, mixed-use neighbourhoods delivering thousands of homes and jobs,” Mr Nash explains.

He says there is plenty of international evidence to show strong and growing demand for housing around public transport, particularly from younger people and an ageing population seeking more connected, less car-dependent living.

Mr Nash is recommending the establishment of dedicated urban development corporations focused on key station precincts.

“These public corporations would have the legal powers and the long-term political mandate needed to assemble land, seek finance, partner with private developers and deliver projects at scale. New Zealand needs this kind of entity to overcome the fragmentation that is currently making progress extremely difficult,” Mr Nash says.

His report also recommends the creation of ‘Station Investment Zones’ around key train stations, where planning rules would shift to enable housing by default and infrastructure funding would be coordinated and guaranteed.

He says action is needed urgently to harness the benefits of public investment in public transport infrastructure like the City Rail Link. With major rail transport upgrades underway in Auckland and Wellington and future rapid transit corridors being considered, there should be a sense of urgency to deliver transit-oriented development.

“New Zealand has a window of opportunity now to shape how our cities grow before land values rise further and transport infrastructure and development patterns become locked in.”

To view the full report click here.