CTU MEDIA RELEASE
28 March 2007

Higher Wages and KiwiSaver Vital Ingredients In Tackling Home Affordability

"Regular wage increases and workers accessing KiwiSaver are two vital ingredients in tackling the high cost of home ownership which is increasingly out of reach for many Kiwis,” CTU Economist Peter Conway said.

“The significant gap between wages and house prices is worrying for many workers, in particular those trying to enter the home market for the first time.”

“There are a number of policy options that need to be looked at, including increased state housing stock and some form of capital gains tax on investment property. The Commerce Select Committee’s inquiry into housing affordability is an important place for these debates and the CTU is encouraging wide participation in the inquiry.”

ENDS