Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Bad Regulation Has Led To Unaffordable Housing

Bad Regulation Has Led To Unaffordable Housing

"Misconceived restrictions on the development of land have led to unaffordable housing”, Roger Kerr, executive director of the New Zealand Business Roundtable, said today.

He was commenting on the release of a report, Regional Housing Markets in New Zealand: House Price, Sales and Supply Responses, by Arthur Grimes and Andrew Aitken of Motu Economic and Public Policy Research.

The report was prepared for the Centre for Housing Research, Aotearoa New Zealand, the Department of Building and Housing, and Housing New Zealand Corporation.

The Motu report shows that land prices have increased much more rapidly than house construction costs, which have remained static or fallen slightly in real terms. Importantly, the rates of increase in land prices differ among local authority districts and regions.

Between 1981 and 2004, the price of land, after adjusting for inflation, increased on average by 105 percent. However, it increased by almost 700 percent in Auckland City but fell in four areas.

Land prices were found to have increased more rapidly where the supply of land responded slowly to changes in the demand for housing.

Mr Kerr said that restrictions on the development of land (sometimes called ‘smart growth’ policies) are impeding the supply of sections and have pushed land and house prices to levels that are unaffordable for many people, particularly those on low incomes. They also push up the cost of renting homes.

"Motu's findings reinforce the Demographia International Housing Affordability Survey which ranked the three New Zealand housing markets that were examined (Auckland, Christchurch and Wellington) as “severely unaffordable”.

"The Motu report correctly states that its implications for policy are “unambiguous”. Policy must focus on keeping construction costs and land costs to a minimum, and regulatory and planning processes need to be closely scrutinised.

“New Zealand does not have a shortage of land. Only 1.4 percent of our land area is urbanised. Mayors Sir Barry Curtis of Manukau and Bob Harvey of Waitakere are to be applauded for their recent statements that more land needs to be freed up urgently.

"The business community has been highlighting the economic harm inflicted by the Resource Management Act and other unwarranted constraints on the development of land and buildings for many years.

"If central and local government are genuinely concerned about the affordability of housing they should act on the findings of the Motu report", Mr Kerr concluded.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news