Between 2007 and 2011, the Auckland Policy Office (APO) managed a research programme with the objective of acquiring evidence about how policy can best contribute to improving the city-region’s productivity and economic growth. In particular, the research programme aimed to shed light on a wide range of factors potentially determining and limiting Auckland’s economic development. The research programme was broad in scope, covering issues as diverse as population and firm location patterns, economic linkages between cities, Auckland’s competitiveness and distinctiveness, the knowledge economy, and housing needs and aspirations. In addition to the studies commissioned under the research programme, this synthesis considers findings from a number of complementary studies in the areas of transport infrastructure, innovation and tertiary education. The result is the wide-ranging discussion of Auckland’s comparative economic performance and competitiveness.
Purpose
The key aim of this study, is to shed light on the question of “why people choose to live where they live?” Specifically, this first paper examines whether there are identifiable population sub-groups that cluster together in Auckland, including the extent to which:
• Income sorting occurs within Auckland
• People wish to locate near various types of amenities
• Different population sub-groups live in different parts of Auckland.
Methodology
The paper uses spatial statistical techniques to examine and describe the patterns of residential location in the Auckland region using Census data from 2006. It focuses on the residential location of people aged 18 years and over living in the Auckland Urban Area. The analysis uses graphical presentation and mapping as well as a range of summary statistics to identify how location choices differ for different population sub-groups. The analysis is conducted at a fine level of geographical disaggregation, roughly equivalent to a city block. A limitation of the research is that it uses individual rather than family or household income, which may weaken evidence of income-based clustering and confound interpretation at a household level.
Key Results
Some specific findings from the research that are worth noting include:
• Agglomeration - The research provided further evidence of agglomeration economies in Auckland, although the results were somewhat weaker than expected on the basis of previous research. However, it should be noted that the quantification of agglomeration economies was not a primary focus for the research programme.
• Spatial patterns of development - The research found significant evidence of household clustering by ethnicity and country of birth, after taking account of other factors that may determine household location patterns. Clustering is strongest for Pacific people, but is also significant for Māori, people of Asian ethnicity, and returning New Zealanders. The results strongly imply that the future spatial patterns of population distribution in Auckland will depend on the characteristics of new entrants into the region.
• Housing – The affordability and quality of housing is an important dimension of city competitiveness. The research highlights a wide range of issues with the affordability of housing and the operation of the housing market in Auckland, including under-supply of housing, constrained residential land supply, dissatisfaction with intensive housing, lack of tenure security, and issues with poor quality of rental accommodation.
• Transportation – The research found significant evidence of benefits from transport infrastructure investment, particularly in relation to the northern motorway extensions. The motorway investments have significantly influenced patterns of spatial development. Anticipated benefits do not appear to be as great, relative to costs, for rail upgrades although it remains too early to tell what the full benefits from improved rail services will be. It is worth noting that factors that influenced households location decisions were consistent across the range of studies. All of these studies emphasised the need to take an integrated and holistic approach to planning of urban form, amenities and infrastructure provision.
• Inter-city linkages – The research finds that the degree of economic inter-linkage between Auckland, Hamilton and Tauranga is negligible, although there are significant freight linkages between Auckland and Tauranga. By the standards of international city-systems, the three cities are economically distant. The findings suggest that improving accessibility and connectivity within cities is likely to have greater economic impact, other things being equal, than trying to improve accessibility between cities.
• Innovation – The research finds that Auckland is a moderate performer in terms of innovation. There are weaknesses in Auckland’s regional innovation system ranging from ineffective mechanisms for commercialising research through to a lack of key supports such as industry-based science and business parks.