In this episode, Nick and Benno discuss whether New Zealand's proposed planning reforms can actually deliver housing affordability or fail to escape the gravitational pull of the status quo. They unpack how our current planning system and the rules it makes are an extractive institution: one that concentrates decision-making power over land use in the hands of a few, beholden to a privileged group of incumbents. The result is artificial scarcity that inflates land prices across entire cities, driving up house prices and rents. They introduce competitive urban land markets as the countervailing force: a more inclusive institution that respects people's right to use land to meet society's needs and empowers the citizenry to participate in land and development markets.

The Planning Bill does mark a genuine milestone: for the first time, competitive urban land markets appears as an explicit goal of the planning system. But we need to clarify what that means and provide the basic elements needed for that goal to bite: a definition, independent monitoring to assess whether land markets are actually competitive, and a requirement that the planning system respond when they are not. Without these, the new goal risks being captured by a planning and legal system that continues to do what it already knows how to do: predict and provide for scarcity.