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

 

Housing Minister Applauded for Focus on Supply

Subject: New Zealand Housing Minister Hon Chris Carter Speech on Housing Supply - Demographia Response

MEDIA RELEASE
(For immediate Release)

DEMOGRAPHIA
www.demographia.com

30 October 2006

“NEW ZEALAND HOUSING MINISTER APPLAUDED FOR FOCUS ON HOUSING SUPPLY.
SUGGESTED SOLUTIONS WON’T WORK.”


On Monday 30 October 2006, the Hon Chris Carter, New Zealand Labour Government Minister of Housing addressed (refer attached speech above) the Local Government Housing Affordability Forum in Wellington. He stated that the Government recognises that the lack of housing supply is the core problem and outlined some suggested solutions that need to be considered.

He also said that the purpose of his speech at this stage is to encourage greater public discussion, prior to policy options being considered.

“Chris Carter must be warmly congratulated for the open approach he is taking to this issue and being clear in that the Governments focus is very much on increasing housing supply” said Hugh Pavletich, co author of the Demographia International Housing Affordability Survey www.demographia.com . adding “But regrettably, his initial suggested mix of interventionist solutions will not work. Put simply, urban land supply must be opened up.”

Hon Chris Carter outlined the seriously deteriorating New Zealand home ownership levels, which are now below those of the United Kingdom, United States, Canada and Australia. In 1991 our ownership level was 74%; in 2001 it had slumped to 68% and is now estimated to be 65%, with Auckland just 61%. The latest Census information due for release 9 December will clarify the situation.

New Zealand’s housing stock is approximately 1,400,000 units, which suggests that in less than five years around 43,000 houses have been priced out of home ownership, forcing people to rent.

“These sorry figures indicate that 120,000 New Zealanders have been denied the right to the opportunity of homeownership in just five years. Since 1991, a shocking 352,000 people have been thrown in to the rental market. This represents populations in excess of Christchurch and Manukau” said Mr Pavletich, adding “No wonder our crime statistics are up and social indicators are down, as young people in particular, are being denied the opportunity to participate fully in our society.”

The 2006 Demographia International Housing Affordability Survey www.demographia.com of the United Kingdom, Republic of Ireland, Canada, United States, Australia and New Zealand released January this year, identified 24 urban markets of the 100 surveyed as currently “affordable”, in that people did not have to pay any more than 3 times their annual household income to house themselves.

New Zealands position, as outlined within the Ministers speech and the Survey, is that New Zealanders housing is at in excess of 6 times incomes. In 1991 New Zealand housing costs were near 3 time’s household incomes.

“It is important New Zealanders realize that these inflated prices creating this unnecessary social havoc, are artificial and caused simply by inept local politicians and planners, for misguided ideological reasons. All they need to do is ensure an adequate supply of land to solve the problem” said Mr Pavletich.

New Zealand’s land area is 269,000 square kilometres of which substantially less than 1.4% is urbanised. To provide sufficient land for further urban development would require 29 square kilometres or one hundredth of one percent of New Zealand’s land area each year.

“We couldn’t urbanise any more than a total of 2% of our total land area over the next 50 years if we tried”said Mr Pavletich.

ENDS

[See... Carter: Stimulating affordable housing}

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fletcher Whittled: Fletcher Dumps Adamson In Face Of Dissatisfaction

Fletcher Building has taken the unusual step of dumping its chief executive, Mark Adamson, as the company slashed its full-year earnings guidance and flagged an impairment against Australian assets. More>>

ALSO:

No More Dog Docking: New Animal Welfare Regulations Progressed

“These 46 regulations include stock transport, farm husbandry, companion and working animals, pigs, layer hens and the way animals are accounted for in research, testing and teaching.” More>>

ALSO:

Employment: Most Kiwifruit Contractors Breaking Law

A Labour Inspectorate operation targeting the kiwifruit industry in Bay of Plenty has found the majority of labour hire contractors are breaching their obligations as employers. More>>

ALSO:

'Work Experience': Welfare Group Opposes The Warehouse Workfare

“This programme is about exploiting unemployed youth, not teaching them skills. The government are subsidising the Warehouse in the name of reducing benefit dependency,” says Vanessa Cole, spokesperson for Auckland Action Against Poverty. More>>

ALSO:

Internet Taxes: Labour To Target $600M In Unpaid Taxes From Multinationals

The Labour Party would target multinationals operating in New Zealand to ensure they don't avoid paying tax if it wins power and is targeting $600 million over three years through a "diverted profits tax," says leader Andrew Little. More>>

ALSO: