Invercargill Plan Change 2 to open door to more medium-density housing

Invercargill is preparing for a broader mix of housing as changes to the city’s District Plan move into force this week, creating more scope for smaller, attached and medium-density homes.

Invercargill City Council says Plan Change 2: Housing and Code of Practice will become fully operative on Friday, 2 October 2026. The change applies to Residential 1 and Residential 1A zones and is intended to enable greater housing density and diversity while retaining provisions aimed at supporting good urban design and managing the effects of more intensive development.

The council says Invercargill has enough residentially zoned land overall, but has identified an unmet need for a wider range of housing types, particularly smaller and attached medium-density homes closer to the central city.

Consenting and Environment Group Manager Jonathan Shaw said the change was designed to respond to those evolving housing needs. He said the city had been missing greater choice in the kinds of homes that could be provided, including options for people who want to downsize or prefer smaller, lower-maintenance properties.

While the plan change creates more opportunities for residential land to be developed at higher densities, the council says design quality remains part of the approach. The provisions are intended to consider the quality of both new homes and the neighbourhoods in which they are built.

The planning process has been under way for more than a year. Council information shows work on the plan change began in September 2024. It was publicly notified in January 2026, attracting 19 submissions and three further submissions. A hearing was held in May before an independent hearing panel, which later approved the plan change with amendments.

The decision was publicly notified on 13 July. No appeals were received before the appeal period closed, allowing the council to proceed with making the changes operative. The council subsequently resolved on 22 September to set 2 October as the operative date.

Plan Change 2 also updates references in the District Plan relating to the council’s Code of Practice for Subdivision, Land Use and Development. Council material says the changes remove references to an expired 2016 bylaw and instead point to the current Code of Practice, which sits outside the District Plan.

The council’s planning material says the housing component is particularly focused on increasing opportunities for medium-density development within about 1.5 kilometres of Invercargill’s CBD. The intention is not simply to release more land, but to allow existing residential areas to accommodate a greater variety of housing forms.

Once operative, the amended provisions will form part of the Invercargill City District Plan. The updated plan will be available through the council’s website and for inspection at the Invercargill Public Library.

Source: Invercargill City Council media release dated 28 September 2026, supported by the council’s Plan Change 2 and public notice material.