Infrastructure investment and housing supply

SGS Economics and Planning


This report was prepared by SGS Economics and Planning for the National Housing Supply Council. It is not a Treasury publication.

Where possible, the Treasury provides an RTF version of released documents. However, as these documents were prepared for the National Housing Supply Council, which is no longer operational, an RTF version is not available.

Following the Council’s change in terms of reference in early 2013 the Council was asked to look at how issues in the infrastructure space, including the planning, financing and provision, impact on housing supply, prices and affordability.  As a first step to address this, the Council commissioned SGS Economics and Planning to undertake a study into infrastructure investment and housing supply. 

The aim of the research was to identify how infrastructure provision interacts with housing location and residential density with the view to further work on the implications this has for housing affordability and supply, labour productivity and the overall productivity of cities.  It finds that major ‘city-shaping’ transport projects can produce substantial community benefits through not only shorter travel times and improved access to employment, but also significant uplift in land values, increased residential density and, in effect, improvements in effective land supply.