Auckland Council has softened a contentious goal to fit a further 300,000 houses into the existing urban area.
A 30 year blueprint for Auckland will allow slightly more growth in surrounding rural land and take more time to develop higher density housing.
The council's initial aspiration of 75% of new housing in the present urban area will be replaced by a range between 60% - 70%.
The goal is a key element in the plan to accommodate a further 1 million residents in Auckland by 2040.
Mayor Len Brown says the plan remains to create a compact city, rather than further sprawl. But he accepts that the initial goal might have been unrealistic.
The council says much of the new housing in Auckland in the next decade will be in greenfield areas, while it builds public confidence in new styles of higher density housing.