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Housing Affordability about incomes as well as house prices

CTU Media Release

16 December 2011

Housing Affordability about incomes as well as house prices

Peter Conway, CTU Secretary says “we welcome the focus brought to the issue of affordable quality housing in New Zealand by this report, and its interim findings that quality housing is simply unaffordable for many New Zealanders.”

“Housing affordability is defined usually as the ratio between income and house prices or rent. That means we need to focus not just on what can reduce house prices or rent, but also on what can lift incomes, including wages.”

“There seem to be little focus in the report on the importance of quality affordable housing as it directly impacts on peoples health, education and general social and economic well being. Health, social, economic and environmental benefits all come from having a well housed population.”

“We support increasing the supply of state, local government and community housing stock to improve housing affordability and availability to families on lower incomes.”

“In our submission to the Commission, we urged the Productivity Commission to look into whether there is sufficient good quality industry training for the housing sector as well as good wages for those working in the sector.”

The CTU recognises there are many issues covered by the report including regulatory, tax, land supply and infrastructure issues. These will all need careful consideration.

ENDS

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