Hibiscus Coast App

High Costs and Congestion Hold Auckland Back

Hibiscus Coast App

Staff Reporter

30 August 2025, 11:57 PM

High Costs and Congestion Hold Auckland BackAuckland Council Chief Economist Gary Blick on challenges.

High housing costs and clogged roads aren’t just a frustration for Coasties — they’re holding back Auckland’s whole economy, says Auckland Council Chief Economist Gary Blick.


Auckland pumped out $157 billion in GDP in the year to March 2024.


That works out to $88,400 per person, about 13% higher than the national average.


Not bad, but similar cities overseas do much better, often sitting 25–35% above.





Blick says Auckland is productive compared with the rest of New Zealand, but it’s not reaching its full potential.


On the Hibiscus Coast, you can see it in long SH1 commutes and the wait for Penlink to finally ease the pressure.


For families, it also shows up in housing costs.


If house-price-to-income ratios had stayed at 2000 levels, the median home today would be around $680,000 instead of $1 million.


The barriers are clear: high housing costs that drive workers away, too much money tied up in property instead of business investment, growth sprawling out to the fringes, and congestion that drains nearly $700 million a year — about 0.5% of Auckland’s GDP.





Jobs are also under pressure.


In the June 2025 quarter, Auckland had 985,000 people in work, down 23,000 on the year before — a 2.3% fall compared with 0.9% nationally.


“Stronger productivity growth is key to lifting wages and living standards,” Blick says.


He points to local fixes like building more homes near jobs and transport, smarter road pricing to manage congestion, and making sure investment goes where it delivers the most value.


For Coasties, it comes down to this: less time stuck in traffic, more affordable housing, and better chances for local families to get ahead.



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