Labour leader David Shearer has proposed a $1.5 billion government bond issue that would finance the construction of 100,000 homes for first-time buyers.
Mr Shearer says the homes will include terrace housing and apartrments, and be aimed at those with a budget of $300,000 or less.
Two-thirds of the homes would be build in Auckland within five years.
The balance would be built in "affordable" centres including Tauranga, Nelson, Christchurch and Queenstown.
Mr Shearer says as homes are built, in partnership with the private sector and community housing groups, money will be paid back into the pool.
Bondholders would be repaid after 10 years.
National has predicted a cost blow-out. NBR economics editor Rob Hosking has multiple issues with the initiative.
Finance Minister Bill English recently took a white paper to cabinet, following a Productivity Commission report on housing affordability.
The white paper proposed a range of reforms centred on making more land available, and the resource consent process cheaper and easier.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- New Chief Executives appointed for Ministry for Pacific Peoples and Ministry for Women
- Reserve Bank confirms Kiwibank convertible bonds don't meet capital adequacy rules
- NZ dollar holds near highest in almost 4 months vs Aussie as parity talk re-appears
- Absence of inquiry concerns Orion Heath investors
- Youth big winners in Greens' final list
Most listened to
- "All options are open with private equity," says MediaWorks chief executive Michael Anderson
- Orion chief executive Ian McCrae on his company's full-year result and the year ahead
- Mainfreight chief executive Don Braid on the company's outlook and global reach
- The Green Party has revealed its final list and co-leader James Shaw is upbeat about the party's new look
- Steven Newman talks through Eroad's US progress
- NBR Radio: best of the week ended May 26, with Grant Walker