Isn't New Zealand hugely underpopulated? I fear that their real problem is elsewhere...
Just checked quickly:
* the UK: 65 million people, 242 000 sqkm -> crowded
* Romania: 19 million people, 238 000 sqkm -> not that crowded
* New Zealand: 4.8 million people, 268 000 sqkm -> it's definitely not overpopulated...
Edit: Heh, I also checked the density, it's the 203rd country in the world regarding population density. There's definitely a ton of space for people there, if the government wants it and is diligent about promoting construction of affordable housing.