6 August 2015

PM out of touch on Auckland house prices

The Prime Minister’s comments today that Aucklanders want their house prices to keep skyrocketing shows just how out of touch he is about the housing crisis, Labour’s Housing spokesperson Phil Twyford says.

“John Key claims Aucklanders want the value of their homes to keep rising. But for most, that paper wealth won’t be realised unless they sell up and move cities.

“Even people who own their own houses are concerned their kids and their grandchildren will never be able to own a home in Auckland.

“The Prime Minister speaks on behalf of those who own property. But the majority of Aucklanders rent. He has a duty to also represent the generation of young New Zealanders who are locked out of the Kiwi dream of homeownership.

“The housing crisis is a disaster for the country; it’s driving up inequality and sucking vast amounts of investment into unproductive real estate speculation.

“No one wants to see Auckland house prices go bust. But the biggest risk to the Auckland property market is National’s hands off approach to the housing crisis which has allowed a bubble to develop in our biggest city.

“John Key is happy to talk down concerns about the Auckland housing crisis because with the collapse of dairy prices and the Canterbury rebuild coming to an end, the bubble is all that’s left,” Phil Twyford says.

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