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What the MDRS Rules Mean for Your New Home Build

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What the MDRS Rules Mean for Your New Home Build

Everyone is talking about the changes to Granny Flat rules. But what about MDRS? It’s been around for a few years now, yet many investors still don’t realise just how much opportunity it creates.

MDRS is transforming residential development across New Zealand, creating new possibilities for your home.

MDRS allows more homes to be built on standard residential sites without the long, expensive consenting processes we were used to. In most MDRS zones, you can build up to three homes, up to three storeys, provided you meet the key standards for height, setbacks, outdoor space, and outlook.

For many homeowners and investors, this opens the door to opportunities that simply weren’t possible a few years ago.

For our clients, MDRS can mean

  • More flexibility with how your site can be used
  • Better options for multi-unit builds or future development
  • Faster consenting pathways if your design fits within the rules

But MDRS isn’t a free-for-all. Every site is different, and Councils still apply specific controls around stormwater, infrastructure capacity, and natural hazard risks.

We’ve helped clients significantly increase their rental portfolio by adding two homes to a site where only one existed previously. This works best when the land is 800sqm or larger; 1000sqm sites are ideal.

Most banks will treat three homes on one site as a standard residential investment. Once you push for four, you’re usually shifted into commercial lending, a very different process.

If the existing home isn’t in the ideal position, we can move it to the front or back of the section to free up space for additional dwellings.

We can also talk you through what we know about financing these projects using existing equity and “when-complete” valuations. (Of course, please speak with a licensed financial adviser — we are not financial professionals.)

If you’d like to know whether MDRS could help you maximise your site or make a new project viable, get in touch. We can assess your property, talk through your options, and help you plan the best path forward.

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