5.3 Re-defining the Housing Ecosystem

Given the housing crisis in NZ, it is worth considering a range of alternative models of governance, ownership and management in housing development. There are a multitude of development and ownership models that promote a more equitable and sustainable way of living. These models for development sit variably along a spectrum. This spectrum moves from traditional speculative market-led development to emergency housing (See Figure 1). At TUA we are particularly interested in the area that sits within the intermediate housing market – we’ve termed this category ‘alternative development models’. These are categorised by increased resident participation, democratic participation, limited profit, increased affordability and better design.

Each Model has a unique combination of legal structures, financing mechanisms and management or operational arrangements.

In an attempt to deepen New Zealanders’ understanding, this section introduces some common alternative development models that are used around the world. These alternative collaborative approaches can diversify the housing toolkit and guide the development of stronger, more connected and sustainable neighbourhoods.

Social-Minded Build-to-Rent / Co-Living

Build-to-rent means new housing is built specifically as long-term rental properties. These are usually unit or apartment developments owned by a third party entity, from which residents rent their dwelling. Often there are some shared spaces and some curation of community. The burgeoning co-living movement, targeted toward young urban professionals, is a variation on the build-to-rent model e.g. The Collective in London.

Long-term Rental Cooperatives

These co-operatives use a long-term rental model, funding the construction of projects, often via low-interest loans with a long payback period, typically on land leased from the city. An example of this is in Zürich where long-term rental cooperatives have provided housing options for the past 100 years e.g. LiSA in Vienna.

Equity Crowdfunded Mixed-Use Commercial and Residential

Equity crowdfunded developments raise the capital to fund the development through selling shares in the building to community and corporate sponsors. One way is to use mixed-use development managed by an incorporated society and collectively owned by shareholders, who have voting rights related to decision making around the management of the development. Investors earn an annual return based on businesses paying rents, and additional return to investors is based on the capital gain over time e.g. Collett’s Corner, in Lyttelton, NZ.

Urban strategists act as brokers and advocates across the spheres of the built environment; working with government agencies, design & development professionals, and local communities to support the development of actionable, integrated and equitable outcomes. We help people work more efficiently and effectively together, in a way that is focussed on the outcomes we all want to achieve – environments that support our wellbeing.

Property Collectives and Joint Ventures

A property collective allows a group of people to come together with a shared housing focus, such as designing and developing a series of townhouses, which are owned individually once the development is complete. Property collectives can lower related development costs and can sometimes include shared facilities, which also creates savings for the individual owners e.g. Property Collectives in Melbourne.

Zelfbouw

The Dutch word for ‘self-build’, zelfbouw refers to urban renewal housing development close to downtown areas, where individuals have the freedom to co-create their own architecturally designed home, while still cooperating with neighbours’ designs and adhering to height and width restrictions. Costs are reduced as residents often coordinate together with contractors. The new developments have the effect of an organic, eclectic neighbourhood that has been built over time e.g. Villawijk Overgooi, Almere or Monnikskapstraat, Amsterdam.

Cohousing (Investment and Resident-Led)

There are many models of cohousing but all are defined by the ongoing democratic participation in community life by residents or housing owners long after the build is complete. Houses are often more affordable to buy and economical to run because residents share amenities such as living space, gardens and other facilities. Also, developments are often purpose-built with eco-friendly or economical design imperatives e.g. Nightingale (architect-led) or Baugruppen (resident-led).

Housing and Land Cooperatives

Cooperatives are companies that own the building and/or land. The buyer purchases a share in the company and therefore the right to live in a particular unit or apartment but does not own the land or building. The initial financial costs are not as much as those required for a full-ownership house purchase and have proven successful overseas, but are not yet common in NZ.

Community Land Trusts

Community Land Trusts are not-for-profit entities that hold land in trust and enable people to own their own houses on the land. Because the land is in trust, the community has access to affordable homeownership options, as the market appreciation of land doesn’t affect the cost of housing.

Papakainga - Unique to New Zealand

New Zealand does hold its own form of unique housing model – papakāinga. It is a practice of collective living that presents an opportunity for Māori to reconnect with whānau and whenua, and lead sustainable and affordable lifestyles. Papakāinga appears as a group of homes and shared amenities for extended whānau, built on land with common ancestral connections and shared ownership. Papakāinga housing models create an opportunity to support iwi and hapu wellbeing by reconnecting the kāinga, the home, with whānau, community, land, culture and history.

However, this model faces many of the same challenges as those discussed above, including limited policy direction, funding and a poor alignment of Maori asset-holding entities and whānau and hapū-based land management entities. Despite these limitations, Papakāinga housing has and is being delivered, with projects like Mangatawa Papakainga Housing existing and Kāinga Tuatahi in the making.

While there is a growing interest in this area, there are multiple challenges facing groups wanting to develop using the principles and structures of the models outlined above. This is partially due to the lack of knowledge in the associated industries, supporting legal structures and suitable finance products, but is also due to the lack of awareness amongst people about the benefits these models can deliver. Despite these barriers, in recent years several resident-led urban housing developments have progressed, and the sector is rapidly growing.