Housing Minister Chris Bishop's moves to "flood" the country with new homes have largely been met with applause - but there are warnings, too.
The government has agreed to a range of changes intended to free up land for housing, and make it more affordable.
They promote housing density as well as greenfields development on urban fringes - with the minister saying both were needed to achieve necessary growth.
One of the moves to increase density is requiring councils to allow for housing development around "rapid transit", like bus and train lines.
The new rules will make clear what is considered to be rapid transit - and therefore what areas must be built up, Auckland-based transport expert Matt Lowrie said.
Until now, councils had found ways to get around requiring density around rapid transit, he said.
"In Auckland for example, Dominion Road is one of the busiest bus corridors, if not the busiest bus corridor in the country, outside of a bus way.
"It provides more and better service than many of our rapid transit routes, and yet that was excluded from being upzoned, simply because it was not considered a rail line or a bus way."
However, the new rule was at odds with the government's transport policy, he said.
"Where the disconnect is, from the government with their transport policy and what they're funding is focused on not necessarily supporting those sort of developments occurring within our cities because they're focused on a lot of rural highways."
Councils need cash to make growth happen - LGNZ
The organisation representing councils is on board with the government's commitment to growth, but the lack of help to make it happen is a "major concern".
Local Government New Zealand supported "common-sense changes" like the optional MDRS and clearly defining rapid transport, president Sam Broughton said.
"However, the logjam on housing has happened because councils are not resourced to support the level of growth that everyone knows we need," he said.
"If we are serious about solving the housing crisis, we must change how growth is paid for.
"New housing requires roads, footpaths, green space, and services, which are currently really expensive for councils and ratepayers."
The coalition had signalled it would give councils a 50 percent share of the GST revenue on new builds, and Broughton said that was a good place to start - so it was disappointing not to see that in Bishop's announcement on Thursday.
The Labour Party shared the concern that councils could not afford to make growth happen.
"It's all well and good to want to ensure development opportunities, but unless the government fronts with infrastructure money, councils are limited in what they can offer by ways of expansion," housing spokesperson Kieran McAnulty said.
"Labour is open to any measure that will lead to more housing and will lend support where it is likely to work, but not at the expense of building standards or loss of elite productive soil."
Meanwhile, Greater Wellington regional councillor Thomas Nash said Bishop's announcement was "good stuff" that would help solve the housing crisis.
But it was important the environment was factored in to the economics of greenfield developments on city fringes, he said.
"If you build out your cities into land and water catchments beyond the boundary of your city ... you are going to have an impact on the environment, on your freshwater ecosystems, on flooding resilience ... on your coastal environment, sedimentation.
"That all needs to be in the calculation, because at the moment it hasn't been and that's why for the last ... 50 years we've just been sprawling out from our cities, building places that essentially force you to drive a car and where the costs on the environment are ... just not in the equation."
If environmental factors were costed in, Nash was confident it would make economic sense to prioritise inner-city density over sprawling developments.
Wayne Brown speaks on govt housing announcement
Auckland Mayor Wayne Brown said the government's changes were a mixed bag.
He had no problem with the proposals that apartments would not have to have a balcony and there would be no minimum size requirement.
But he said he would not like to see housing intensification take over productive land for growing vegetables in Pukekohe.
Housing intensification made more sense in the city where the necessary infrastructure already existed, he said.