Government can build more than 27 houses a day: Twyford

Twyford on Q+A

Related audio: Infometrics chief forecaster Gareth Kiernan on how Kiwibuild will impact the Auckland market (Nov 6)

0
0:00 0:10
fbuadd to my Stocks
FBU Fletcher Building
$7.780
0.110 1.394%
Volume: 647,365

Experts from the Reserve Bank through to AUT construction management professor John Tookey are struggling to see how the government can hit its KiwiBuild construction target of 100,000 new homes in 10 years – while  Infometrics chief forecaster Gareth Kiernan says that given Auckland's  undersupply of homes, estimated at 42,000, the initiative won't move the dial on Auckland's average $1 million selling price even if it does.

But Housing and Urban Development Minister Phil Twyford is confident the government can build more than 27 houses on average per day – the necessary number to hit 10,000 a year.

"I know expectations are high, but we make no apologies for being ambitious about fixing this problem. We have a social and economic disaster in this housing crisis. It needs an ambitious response," he said on Q+A.

When questioned by Q+A’s Jessica Mutch on doubts expressed by the Reserve Bank about Labour’s plans (the central bank projected 5000 per year), Mr Twyford said, "The Reserve Bank commentary was made on the basis of some Treasury advice that I don’t believe was based on all of the information to hand. They made certain assumptions without looking at all aspects of our policy. For example, we know workforce constraints are a big issue."

Mr Twyford says it will take three years for the project to hit its stride. He sees 16,000 new homes being built in the first three years, with the balance in the remaining seven.

He says it is possible to build "affordable" standalone terrace houses for $600,000 each.

The minister points to his government's can-do approach, which has seen rapid implementation of policies like its foreign buyer ban. However, he still remains short on detail for the logistics of KiwiBuild. The market is yet to believe. Shares in Fletcher Building, whose residential unit would almost certainly have to be central to KiwiBuild, continue to languish (though admittedly the company has issues on several fronts).

On top of his Kiwibuild plans, Mr Twiford also told Q+A he would like to build double the number of state houses promised in opposition.

"So we said while we were in opposition, that we wanted to deliver a net increase of at least a thousand a year, and we said we wanted to be more ambitious than that. I’ve asked officials to look at how we can double that and build 2000 extra state houses a year, and I’m looking forward to their advice coming back to me on the options on that," he said.

The housing minister also reiterated a commitment to "stop the mass sell-off of state housing’ but qualified his pledge by adding, "You’d be crazy not to sell the odd one here and there to maintain and upgrade the portfolio."

Watch the full interview here.


19 · Got a question about this story? Leave it in Comments & Questions below.


This article is tagged with the following keywords. Find out more about MyNBR Tags

Post Comment

19 Comments & Questions

Commenter icon key: Subscriber Verified

Reminds me of a movie line; "What is this, a house for ants?!"

Reply
Share
  • 0
  • 0

600K,stll too much for the average worker.
They are dreaming.
27 a day means they are already about 567 behind target.

Reply
Share
  • 2
  • 0

It's easy to pass an act to ban foreign buyers. What happens when Twyford discovers you can't just pass an act to build 10,000 houses a year ???

Reply
Share
  • 2
  • 0

Open the refugee flood gates and build dangerous urban ghettos?

Reply
Share
  • 0
  • 0

In the immortal words of that great Aussie movie "The Castle", tell him he's dreaming. Worse, Mr Twyford is falsely elevating the dreams and hopes of thousands of wannabe home owners. Shame on him

Reply
Share
  • 1
  • 0

So 'affordable' is now $600k according to Labour. How is that qualified? At the same time 'poverty' is earning less than 40 percent of nz median income. How do the Labour party qualify all of this. Dont see low/middle income earners moving into their new affordable homes that probably wont get built anytime soon. And landlords are going to ramp up rents if Labour plans for them are put in place. Seems like they are going to make things worse for those in need.

Reply
Share
  • 2
  • 0

I think the government has defined the goal posts.

Please stop talking and start playing .

there are 40000 people living in cars in NZ.

Lets stop putting energy into talking and the he/she is right - wrong politics.

lets get moving - I want to see some action that helps.

I will judge the government on its actions.

Reply
Share
  • 0
  • 0

40k living in cars? Where does that figure come from? Does that count the commuters on the Southern Motorway?

Reply
Share
  • 1
  • 0

Twyford and Arden need to sit down and have a cup of tea. And they need to get their policies working together. As bringing in more refugees is not going to do anything to reduce housing demand.

Some law changes to streamline the RMA and council building rules would be really helpful as well.

Reply
Share
  • 0
  • 0

Is this 40,000 people living in cars-number made up? Where about are the 40,000 living in cars? That's a lot of cars. Where are all these cars parked up? That's 1% of the population living rough. Surely this is made up or not correct as other social data would be skewed (and it's not) to reflect such a degenerative state. If it was the case, surely you wouldn't make matters worse by going with Urban Ghetto-creation policy?!

Reply
Share
  • 0
  • 0

0.93% of the country is defined as homeless in the recent OECD report. So yeah, about 1% have insecure accommodation.

Reply
Share
  • 0
  • 0

insecure? That could mean just about anything

Reply
Share
  • 0
  • 0

Giving Phil the benefit of the doubt that Labour will build 16,000 in 3 years that leaves 84,000 remaining to build in 7 years which is 50 a day based on a 5 day working week. based on consents granted and lets be generous and assume last years consents were all built which they weren't that equates to 10 a day so ramping up to 50 a day is a task even Hercules would fail to achieve.

Reply
Share
  • 0
  • 0

Plenty of houses for sale in Auckland do we need more housing?

Labour needs to stop talking about housing and look after Landlords who are providing housing for everyday New Zealanders.

A landlord has no control over house prices and is providing a housing service to their community.

Landlords are now forced to give up thanks to Labour which is already causing a dire rental shortage!

Reply
Share
  • 0
  • 0

I assume that when landlords 'give up', they don't burn the properties to the ground. More likely, someone buys the house to live in or rent out. NO change to the housing stock.

And of course, landlords are all in it to provide community service - not to offset their income tax with losses, get someone else to pay towards their mortgage and take a big, tax free capital gain when they cash up.

Reply
Share
  • 0
  • 0

Someone please enlighten me, why is landlords having to give up their property causing a rental shortage? If the landlord can't afford it then won't it be going to another investor who can afford it or even to a first home buyer? I'm a landlord and if it isn't economic for me to keep my house then I'll sell it and let someone else take the risk. Better that than leaving it empty.

Also is this where pre-building housings in factories could make construction a lot quicker and therefore get them up quicker (but yes 27-50 a day is very ambitious)?

Reply
Share
  • 0
  • 0

Labour's created a "Rental Crisis" in Wellington and Auckland as Landlords are forced to get out!

Labour have bullied Landlords even when they were in opposition but now their punishing policy is too much to bear for private rental household providers to their community.

Reply
Share
  • 0
  • 0

Methinks Ted Stanton doth protest too much.

Reply
Share
  • 0
  • 0

Whilst I recognize that arithmetic may not be Twyford's strong subject using my trusty Japanese calculator 10,000 houses divided by 27 equates to 370 days, even working a 6 day week 52 weeks a year gives 312 working days at 27 houses per day equates to 8424 houses. An optimistic calculation of 48 weeks and a 6 day working week gives 7776 houses so Phil either improve your arithmetical skills or legislate to expand the year to 60 weeks or more.

Reply
Share
  • 1
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6993 0.0004 0.06%
AUD 0.9120 0.0003 0.03%
EUR 0.5937 0.0002 0.03%
GBP 0.5204 0.0001 0.02%
HKD 5.4607 0.0027 0.05%
JPY 78.5510 -0.6510 -0.82%

Commods

Commodity Price Change Time
Gold Index 1257.1 -3.460 2017-12-14T00:
Oil Brent 62.7 0.860 2017-12-14T00:
Oil Nymex 57.1 0.410 2017-12-14T00:
Silver Index 15.9 -0.009 2017-12-14T00:

Indices

Symbol Open High Last %
NASDAQ 6887.4 6901.1 6875.8 -0.28%
DJI 24631.0 24672.5 24585.4 -0.31%