The Dunedin City Council is to look into possible incentives or help for property owners to overcome barriers to converting space for residential use.
Cr David Benson-Pope said there was an appetite for people to live in increased numbers of residential dwellings in the inner city.
However, it was a shame space in places such as above retail premises was often vacant, he said.
"There are clearly a number of property owners who do actually want to make better use of space,’’ Cr Benson-Pope said.
Obstacles included meeting the cost of fire regulations, safe access and insulation, and there could be ways the council could assist, he said.
Everybody benefited from "increased animation’’ in the central city, through activity and security, he said.
His resolution passed 14-1.
Cr Lee Vandervis, though sympathetic, voted against because converting space for commercial purposes was not included.
Cr Carmen Houlahan said having more people living in the central city would be great, but she was wary of implications for the live music scene.
The council is continuing to grapple with how rules might be modified to prevent music venues being lost to the city amid noise complaints or woolly regulation.
Deputy mayor Sophie Barker said buildings with under-used space were often heritage buildings and a look into incentives could be useful.
The city has a heritage fund, which helps building owners to carry out repairs or improvements in a way that preserves heritage character.
Cr Steve Walker said anything that encouraged full use of buildings and space was good by him, particularly as it added to "vibrancy of our increasingly funky and progressive city centre’’.
Cr Christine Garey said Dunedin had an accommodation shortage and facilitating more inner-city living would fit well with a revamped George St and adding vibrancy and security in the central business district.
