New Zealand needs more housing, but the latest townhouse resale figures show that building more of one product is not the same as building the homes people truly want.

A notable share of townhouses have reportedly sold at a loss. Townhouses have been central to intensification in major cities.

Buyer demand depends on location, design, price, body corporate settings and perceived quality.

Planning policy can encourage density, but it cannot force confidence. If buyers are wary, the market will say so.

A better response would focus on quality, variety and trust — not just supply numbers.

The real test is whether the next wave of housing reflects what people actually want to live in.