For anyone with an understanding of basic economics, the article in the Bay of Plenty Times (April 7) containing the headline, "Bay Land Too Expensive" came as no surprise.

The article related to a report completed by leading economist Rodney Dickens which found that the intensive housing in established areas philosophy enshrined in the SmartGrowth strategy is artificially driving up land prices. No surprises there then, as it is only the old laws of supply and demand and pricing at work - if you limit the supply and sustain the demand, then prices must go up.

What the article did not touch upon was the overseas experience with "SmartGrowth". In the US, only the SmartGrowth states, such as California and Florida, experienced the boom and bust in property. As urban economist Owen McShane points out, housing in the lightly regulated states, such as Texas and Georgia, remained stable and affordable.

Ironically, in a country with a plentiful supply of land, SmartGrowth strategies have made Auckland's urban area the most dense in Australasia and more dense than the urban area of New York.

How, you may well ask, have we got trapped in such an irrational spiral of thinking? The answer is simple - for several decades, the planning fraternity have viewed developers and subdivisions in the same light as cricket purists would view an underarm delivery. The reality is that this thinking is seriously undermining our productive capabilities and trapping people into limited choices when it comes to housing solutions.

There is now a global shift occurring, in that this approach is being universally challenged. It will be interesting to watch our own city's response to both Mr Dickens' report and to the global shift in thinking.

Until next time, have a great week.