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

Gordon Campbell: On The Budget

It may seem like Oliver to be so bold as to ask the Finance Minister for more gruel – but what the Dickens, Steven Joyce… is this Budget really as good as it gets?

Supposedly, the public was going to receive significant rewards – an election year lolly scramble no less – for the eight years of belt tightening that they’ve endured, and for the rundown of essential public services.

Well, what Budget 2017 delivered instead in Education and in Health were allocations barely sufficient to maintain the current levels of service delivery More>>

Scoop Full Coverage: of Budget Announcements & Reaction
Latest: Scoop Search

 
 

Carer Settlement: Threat Of Staff Exodus In Mental Health

As a result of the recent pay rise awarded to their aged care and disability sector colleagues, many staff in non-government mental health and addiction organisations are considering leaving to join these workforces. More>>

ALSO:

Climate Policy: New Zealand Set To Blow Its Carbon Budget By 27%

The Government’s Greenhouse Gas Inventory shows New Zealand is set to release 647.5 million tonnes of carbon emissions between 2013 and 2020 – 137 million tonnes more than we are allowed under the Kyoto Protocol. More>>

ALSO:

Earlier:

Christchurch Considers Cathedral, Stadium: Cathedral Working Group Report Released

“About half of Christchurch wants to see the cathedral reinstated, the other half wants something new and more modern, but really, everyone just needs a decision." More>>

ALSO:

Auditor-General Stands Down For Investigation: Gordon Campbell On (Not) Taking Responsibility

So Martin Matthews, our current Auditor-General wishes he could have detected “earlier” the fraud that occurred on his watch at the Ministry of Transport. Hmmm. But he could have detected it earlier, surely? That’s the point. More>>

ALSO:

NGOs Pleased: Govt To Halt Collection Of Client Data

Brenda Pilott, the chair of ComVoices and national manager of Social Service Providers Aotearoa, congratulates the government on its decision to call a halt to the collection of individual client data until the concerns of not-for-profit service providers have been worked through. More>>

ALSO:

Gosh: Blasphemy Law Repeal Struck Down

Chris Hipkins, the MP who tabled a Supplementary Order Paper to add our Blasphemy Law to the Statutes Repeal Bill, said this was a "sad day for freedom of speech, tolerance, and leadership". More>>

ALSO:

 
 
 
 

Opening The Election Supporters

 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election