Supply In Addressing Housing Affordability Issue
NEW ZEALAND LABOUR GOVERNMENT NOW FOCUSES ON SUPPLY IN ADDRESSING THE HOUSING AFFORDABILITY ISSUE.
Attached is a pdf copy of a letter from the NZ Housing Minister, Hon Chris Carter to the writer, where the Minister states that the Government focus is now on supply. In the Ministers words (from the attached letter) –
“…….I do believe it is wise to shift our attention to supply side processes and the scope for interventions that can contribute to stabilizing housing costs”.
And further –
“I agree that readily available land with an efficient home building industry can help to moderate house price inflation and assist affordability through a housing boom”……..”Land accounts for an increasing proportion of the price of a typical ‘land and house’ package purchased by New Zealanders”
And concludes –
“Thanks again for your kind words of support and rest assured that under the auspices of the New Zealand Housing Strategy Committee, Housing New Zealand Corporation and the Department of Building & Housing are working closely with a range of Ministries and Local Government on housing supply issues”.
The letter must be read in its entirety.
It is heartening that the New Zealand Labour Government recognizes the core problems and under the leadership of the Housing Minister, Hon Chris Carter, is willing to provide the leadership, in starting the process of addressing this serious issue.
As this process moves forward, it is expected that other political parties, interest groups and individuals will support the Minister and those working alongside him, in a constructive way that is clearly in the wider public interest. This issue is too important for political point scoring and selfishness.
The focus must be on re –establishing housing affordability over a reasonable and realistic time, so that young New Zealanders can access housing, at least as easily as earlier generations.
New Zealand has much work to do. This years Demographia International Housing Affordability Survey, clearly illustrates how severely unaffordable housing is in New Zealand at present. People should not have to pay more than three times their annual household income to purchase a home. And we must make it a priority to reverse the declining home ownership trends.
Co author – Demographia International Housing Affordability Survey