"Green is the New Gold: How Climate Change is Shaping New Zealand's Land Values"

Climate change has become a critical topic this summer due to the destructive effects of Cyclone Gabrielle and heavy rainfall in the Upper North Island. Experts suggest that focusing on the inherent qualities of green space could result in an increase in land values.

New Zealand's growing population has led to the rapid development of large land sites for housing and commercial development. However, supply has failed to meet demand, putting pressure on aging infrastructure such as roads, water systems, and community facilities. Zoning provisions have attempted to balance development with sustainability, but Auckland's green space has decreased by 30% in just over 30 years, affecting the way we perceive and value natural areas.

The latest IPCC report shows that cities generate about 70% of global carbon dioxide emissions primarily through transport systems, building, and household consumption. The loss of green space also contributes to global warming and affects our ability to manage extreme weather events. Natural areas play a crucial role in temperature regulation, stormwater management, air filtration, and habitat provision, which are vital to the environment's health.

Urban green space is primarily lost due to infill development, converting backyards, gardens, and private green spaces into subdivisions, alternative dwelling types, and sealed car parking. To address the rapid escalation of house prices and supply and demand issues, the government has introduced new rules, such as the Medium Density Residential Standards (MDRS) under the National Policy Statement on Urban Development (NPS-UD). However, critics have expressed concern that the standards may accelerate the ongoing reduction of private green space without increasing public parks and conservation areas.

There is no statutory requirement for territorial authorities to plan or provide public green spaces in New Zealand, putting upward pressure on land values as private green space and undeveloped land sites become scarce. As more Kiwis seek affordable housing, property size has shrunk, and the country's share of townhouses, units, and attached dwellings like flats has increased by 45% in the past decade. By 2043, Auckland may require nearly 210,000 additional homes, and up to 3,000ha of private green space may be lost to housing development.

While policymakers struggle to balance urban development and affordable housing with the preservation of green spaces, the emerging effects of climate change could see natural areas, reserves, gardens, and vegetation valued at a higher financial rate due to their scarcity. As climate change contributes to more extreme weather events, pockets of the natural environment will play an increasingly critical role in mitigating the worst effects.

In a warming world, leafy streets, communities serviced by reserves, recreational areas, parklands, homes with backyards, rural, and lifestyle properties will become even more valuable.