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Kiwisaver Homestart Grant will drive housing prices higher

The Kiwisaver Homestart Grant will drive housing prices even higher

"National's plan is slightly better than Labour's but both parties plans do not tackle the real problem, a shortage of land" said Dr Whyte. "Subsidising demand for houses in short supply because of the RMA and the Auckland urban limit will drive housing prices even higher. That is Economics 101" said Dr Jamie Whyte today.

"More money will be chasing a largely fixed supply of land, so prices must go up" said Dr Whyte. "This paper over the cracks policy on housing affordability from John Key today is something we would expect from Labour or the Greens" said Dr Whyte. "The solution to high house prices is freeing up the supply of land. Land just inside the Auckland urban limit is nine times the price of that just outside it" said Dr Whyte. "Only ACT is proposing reforms that will make housing affordable again. This starts with repealing the RMA and restoring the freedom to build" said Dr Whyte.

ends

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