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

 

"Demographia Urges Quality Housing Research"

"Demographia Urges Quality Housing Research"

Auckland City Council released a short five page report on housing costs this week, indicating that costs are in excess of 80% more than they are in Australia. The Council has since admitted it got its sums wrong, suggesting now that costs may be 50% higher.

Industry groups responded by indicating that the pricing differences are significantly lower than the revised Council estimates. Demographias initial research suggests that New Zealand housing costs are in the range of 20 -30% higher than Australia's.

"This shonky research by the Auckland City Council highlights the urgent need for quality housing research in New Zealand" said Hugh Pavletich, co author of the Demographia International Housing Affordability Survey. The 2007 3rd Edition Survey was released last month.

The Demographia Survey found that housing within the major urban markets of New Zealand overall is 6 times household incomes, with Auckland 6.9, Christchurch 6.0 and Wellington 5.4.

The international standard for affordability is that housing should not cost more than 3 times household incomes.

"New Zealand is well off the mark "said Mr Pavletich, adding "It's about time politicians within both central and local government started acting responsibly with this issue, as the social costs of this crisis, simply cannot be allowed to continue.

The New Zealand Planning Institute strongly supports the Demographia Survey and is urging Councils to treat housing affordability as seriously as environmental sustainability.

In response, Demographia congratulated the New Zealand Planning Institute and set out the steps to be followed in restoring housing affordability over a reasonable time.

Demographia again urged the Reserve Bank and the Centre for Housing Research of Aotearoa New Zealand to urgently assess the degrees of housing stress within every local authority and significant urban market. This should mirror the Demographia approach, as recommended by the United Nations and World Bank, clearly illustrating the trends over the past 20 years.

The Reserve Bank and CHRANZ have been asked by Demographia to research New Zealand housing construction costs to ascertain how they compare with similar markets and also the pricing differences for raw land around our urban fringes.

ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

South Island Flooding: Focus Moves To Recovery

As water recedes throughout flood-impacted areas of the South Island, Minister of Civil Defence Nathan Guy has praised the efforts of those who were involved in the response to the flooding... More>>

ALSO:

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:

Fund For PPP Plans: Govt Embraces Targeted Rates To Spur Urban Infrastructure

The government's latest response to the Auckland housing shortage will see central government and private sector firms invest in 'special purpose vehicles' to fund essential roading, water and drains that Auckland Council can't fund without threatening its credit rating. 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: