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
- NZ dollar climbs above 70 US cents on relatively upbeat kiwi fundamentals
- Xero makes a special alteration to rival's billboard
- Snowball appoints head of growth capital
- Three fintech start-ups pitch for funds at end of Kiwibank-sponsored accelerator
- MARKET CLOSE: NZ stocks slip as Manchester concert attack drags on investor sentiment, Comvita drops
Most listened to
- Business leaders on Budget 2017: Failure to set up any significant public-private partnerships for infrastructure is "really disappointing," says Paul Glass
- Serko’s Darrin Grafton says the company can use its SME platform to expand globally
- Trump travels overseas selling jobs as North Korea continues to lash out, on Trump’s Beltway with Nathan Smith
- Nick Shewring says co-working attracts "awesome people doing cool things"
- NBR Radio: best of the week ended May 19, with Grant Walker