Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Decisive action on red tape is the answer to housing issue

Decisive action on red tape – not KiwiBuild – is the answer to New Zealand’s housing affordability problem

Wellington (22 January 2019): Decisive government action to free up the supply of land for housing and to reduce construction costs across the board is the only viable remedy for New Zealand’s housing affordability problem.

KiwiBuild – the government programme to build or deliver 100,000 homes in 10 years ¬– is a massive distraction from fixing the housing problem, according to a new research report,KiwiBuild: Twyford’s Tar Baby, released today by The New Zealand Initiative.

“The simple fact is that government does not need to commission new houses to increase the supply of land for housing or to reduce regulatory constructions costs”, said Dr Bryce Wilkinson, senior research fellow and author of the report.

The report explains why it makes no sense for taxpayers to subsidise KiwiBuild homes, but neither does it make sense for government to commission houses on an unsubsidised basis. The former is embarrassing on equity grounds, as was seen with KiwiBuild in Papakura. The latter risks the embarrassment of unsold homes, as with KiwiBuild in Wanaka.

Regulatory red tape is behind the astronomical property price inflation in Auckland.

Median section prices in Auckland reportedly rose 903% between 1993 and 2018. Artificial constraints on land supply are a major factor. Research has found that land inside the artificial Auckland City boundary was around 10 times more expensive than land just outside it.

Adding insult to injury, construction costs per square metre rose by 212% between 1993 and 2018 in Auckland, more than twice as fast as the consumer price index. Council regulations have reportedly added between $32,000 and $60,000 to the cost of constructing a dwelling in a subdivision.

“Government can and should take action to reduce such cost excesses across the board, independently of KiwiBuild”, said Dr Wilkinson.

The report also explains why KiwiBuild cannot be expected to increase the proportion of home ownership in New Zealand materially, or the long-run housing stock.

Lacking a coherent rationale, KiwiBuild is a floundering policy.

Read more:
KiwiBuild – Twyford’s Tar Baby is now available on our website.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Anti-Corbyn Split In British Labour

The resignation of seven UK Labour MPs in protest against the leadership of Jeremy Corbyn is another example of the centre-left’s readiness to sabotage its own cause – such things are always allegedly done on principle – even if the outcome hands the country over to Conservative rule for five more years.

Certainly, a technician hot-miked at the splitters’ press conference was pretty sure this would now be the outcome, and he accidentally informed the nation to that effect. More>>


Auckland Action Against Poverty: Motels Profit From Housing Crisis

A single motel which charges up to $1,500 per week per room has received over $3 million worth of Government funds to provide emergency assistance, despite never having a Code Compliance Certificate – an offence under the Building Act – and receiving a series of longstanding complaints from occupants... More>>


Gordon Campbell: On The Alleged China Relations Crisis

If New Zealand’s relations with China are ‘deteriorating’ then you still need a microscope to detect the signs... More>>


Environment: Government To End Tenure Review

“Tenure review has resulted in parcels of land being added to the conservation estate, but it has also resulted in more intensive farming and subdivision on the 353,000 ha of land which has been freeholded. This contributed to major landscape change and loss of habitat for native plants and animals,” said Eugenie Sage. More>>


Bell Tolls: Big Changes, Grand Mergers Planned For Vocational Training

“At a time when we’re facing critical skill shortages, too many of our polytechnics and institutes of technology are going broke... More>>


Sallies' State Of The Nation: Progress Stalled In Reducing Inequality

The report shows a lack of tangible progress in key areas including record levels of household debt and a growing gap in educational achievement between poorer and more well off communities. More>>


Party Politics In Tax Morale Survey: SSC To Seek Answers From IRD

Minister of State Services Chris Hipkins has today asked the State Services Commissioner Peter Hughes to examine IRD’s reported inappropriate use of a public survey. More>>





InfoPages News Channels