Housing Prices
- Don Brash
- Nov 14, 2021
- 1 min read
The Government and the National Party recently announced agreement about the need to make it easier to build more homes on residential sections in our major cities, presumably with the hope that this would take some of the upward pressure off house prices.
But in the Herald on Sunday (14 November 2021), Ben Leahy noted that house prices continue to rise rapidly.
The reasons for this can’t relate to a high rate of immigration: we’ve had almost no net immigration since the pandemic began.
So what’s happening? A friend offered me a clue by noting that, in a paddock in Papakura, 400 square metre sections are currently on sale for $977,000. The section alone is wildly beyond the budget of ordinary wage and salary earners.
Why? Quite simply because Auckland Council has made it illegal to build homes beyond the Metropolitan Urban Boundary (which Papakura falls just within) and the Government has refused to overturn that policy despite promising to do so in their 2017 election campaign.
Until land is freed up around the perimeter of Auckland, house prices will remain amongst the most expensive in the world.
Don Brash
Lack of immigration has certainly made a difference to the much lower housing deficit. ASB economists recently have estimated that housing supply will close the gap by 2022-23.
The housing issue is not a supply issue.
It is a cheap credit issue, like all housing bubbles, everywhere, throughout history have always been.
The cost to rent a house should broadly move in line with the cost to buy a house (and the growth in GDP). I have rented a house for 11 years. In that time my rent has gone up about 40%.
The value of this same house has increased around 150%.
That is clearly not a supply issue. It is a function of readily available and historically cheap credit.
A lot of good thoughts here with one action on 21/11. We need more than that.
I believe an org which could be based on groundswell could get going to eventually ensure citizens controlled government. Clearly Parliamentary Representation has failed us all. It has been hi-jacked. And we are letting it.
The housing problem like every other problem will never be fixed by this government or any other.
The government has signed away any democratic value left in NZ and we are in the grip of the Globalists and Agenda 20-30 who have no interest in democracy.
Jacinda and the current government are fully on board with the terms of the Agenda and merely tip toe around the edges of housing etc, they have no solutions and no-one is calling them out.
The media are not worth the time of day and covid is the focus and Jacinda hides behind the 'blanket of protection' (media) and never has to answer the real tough questions.
GROUNDSWELL IS HAPPENING 21st NOVEMBER NATIONWIDE -…
Ron's comment about the skills and material shortages that are preventing houses being built is spot on. Shortage of land and regulatory restraints are only part of the problem.
In fact NZ has never been able to build many houses per year,. We were stuck at around 4-5000 max for a long time, Until we started building upwards. In the manner of more densely populated countries.
That's the thing you see. Population growth was once driven mainly by our birth rate, and we could keep up with housing demand. That growth has been more than doubled by immigration. increases over the last two decades. We're still in catch up mode and will be for another decade at least.
Its notable…