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

 


Housing market comparisons - Message to NZ PM

Housing - European and other markets comparisons - Message to NZ Prime Minister Helen Clark from Hugh Pavletich, Demographia


To: Helen Clark, Prime Minister, New Zealand
From: Hugh Pavletich, Co author, Demographia Survey

SUBJECT: European & other countries (including New Zealand) Housing Comparisons

Dear Ms Clark,

I’m delighted to learn of your belated interest in housing issues and that you have a particular interest in Europe and it would appear - European housing markets.

My view is that this years 4th Edition Demographia Survey ( www.demographia.com ) of 227 urban markets of the 6 nations of the Anglo world, is more than adequate, in illustrating clearly that New Zealand has a major housing crisis to deal with.

It is particularly relevant to New Zealand (which in population terms comprises about 1% of the countries surveyed) because of our shared histories and similarities with respect to cultural and legal traditions.

For your information – please find attached an XL file sent to me by a British colleague, who had been provided the above information free of charge by the Bank for International Settlements (BIS). Your recent media statements would suggest that your officials do not appear to have provided you with this information.

The BIS data attached provides inflation adjusted house price movements from 1970 to 2006 for the following sixteen countries –

(a) USA
(b) Great Britain
(c) Australia
(d) Switzerland
(e) Japan
(f) Italy
(g) NL
(h) Denmark
(i) Germany
(j) Canada
(k) Belgium
(l) Norway
(m) Spain
(n) Finland
(o) Sweden
(p) France

You will be disappointed to learn in reading this data –again - New Zealand scores poorly.

The BIS data must be kept in perspective – as the most important measure is the relationship between house prices and incomes.

The most appropriate measure for assessing housing affordability - is what is termed the “Median Multiple”where the median house price is divided by the gross annual median household income. This method is recommended by the United Nations and World Bank and employed by Demographia in producing its annual surveys.

Households should not have to pay any more than three times their annual household income to house themselves. Your Government has regrettably allowed this to explode out to 6.3 time’s household income with respect to the seven New Zealand urban markets covered within the latest international survey by Demographia.

When interest costs are added – New Zealanders are in the worst position of the six Anglo nations surveyed.

You may wish to ask your officials to generate the United Nations and World Bank recommended “median multiple” trends for the European countries of interest to you –and provide the public with results of this research.

Yours sincerely,
Hugh Pavletich
Co author – Annual Demographia International Housing Affordability Survey
www.demographia.com
Christchurch
NEW ZEALAND


ENDS


See... HOUSE_PRICE_DATA.xls

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: John Pilger, And Making War On China

In July, the New Zealand Defence Force is scheduled to join the latest round of Talisman Sabre, a huge training exercise that Australia carries out biennially in conjunction with all four arms of the US military.

Last time around in 2015, New Zealand contributed 650 personnel, 45 vehicles and two of our $NZ771 million dollar fleet of NH90 helicopters to this regional war game.

What’s weird is that Talisman Sabre is actually a rehearsal for an assault on China and its ability to defend itself. More>>

ALSO:

 
 

Urban Planning Report: Momentum Grows To Replace The RMA

A major new report from the Productivity Commission lays the foundation for action on the growing political consensus that the Resource Management Act and associated laws are failing both cities and the natural environment and need a complete rewrite. More>>

ALSO:

Vaping: Quitline Supports Decision To Legalise Nicotine E-Cigarettes

Today Associate Minister of Health, Hon Nicky Wagner has announced that Government are taking the proactive step of legalising nicotine e-cigarettes, a move which Quitline is pleased to hear and support wholeheartedly. More>>

ALSO:

Gordon Campbell: On The Labour/Greens Deal (And The NZDF)

If Labour and the Greens were hoping their Budget Responsibility Rules (BRR) agreement would foster an unlikely alliance then hey… mission accomplished! Because it isn’t every day that Sue Bradford, the CTU and Matthew Hooton speak with one voice, as happened yesterday. More>>

ALSO:

Until After The Election: Extension Of Report-Back Date For Havelock North Inquiry

Attorney-General Christopher Finlayson announced today that the report-back date for the independent Inquiry into Havelock North Drinking-Water has been extended at the request of the Inquiry’s Panel. More>>

ALSO:

Little Heading For Court: Apology Over Donation/Hotel Contract Claims Not Accepted

Today I want to publicly apologise unreservedly to Mr Hagaman for any hurt, embarrassment or adverse reflection on his reputation which may have resulted from my various media statements. I have offered that apology to the Hagamans. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news