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

 


Improving Housing Affordability - More than Planning Reform

FOR IMMEDIATE RELEASE

31 October 2012

MEDIA RELEASE

Improving Housing Affordability Needs More than Planning Refrom

The New Zealand Initiative welcome the government’s response to the Productivity Commission’s recommendations on housing and planning but believe they are not going far enough.

“It is good to see the government’s commitment to improving housing affordability,” says Dr Oliver Hartwich, Executive Director of The New Zealand Initiative.

But commitment alone will not be enough to solve our housing affordability crisis.

According to Dr Hartwich, the main problem not addressed by either the Productivity Commission or the government is the link between residential development and local government finance.

“Under the current system, councils are often financially penalised when they plan for new housing development in their area,” says Dr Hartwich.

New infrastructure needs to be financed, but local government revenue does not increase enough to cover necessary infrastructure upgrades.

“By focussing mainly on the complexities of planning, we would ignore the most crucial obstacle to the delivery of new housing: covering the costs of new infrastructure,” says Dr Hartwich.

The New Zealand Initiative is currently undertaking research on a root-and-branch reform of local government finance. The research project examines ways of reducing supply constraints in the housing market by incentivising residential development at the local level. Such schemes have kept housing markets stable in Continental European countries such as Switzerland and Germany over long periods of time.

“To make New Zealand housing more affordable, we need to learn from countries that have a better track record in keeping house prices stable,” says Dr Hartwich.

Reducing the complexity of planning is a good first step in helping New Zealanders struggling to pay for housing. But it is only a first step.


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news