Young Kiwis condemned to being renters
"Smart" urban planning to blame for land rationing and high housing costs.
We’ve heard it all before in numerous reports – release more land to reduce the cost of housing.
The Productivity Commission’s final report out today reiterates its draft findings about land rationing driving up the cost of housing.
But will the government do anything about it?
The experience of the Canterbury earthquakes suggests it is unlikely to depart from its laissez faire approach.
And city and district council urban planners have made an art out of rationing land and playing into developers’ hands so they can drip feed sections onto markets at highest value.
Why does it matter?
“Safe, comfortable and stable housing is important for social cohesion, family stability and individual wellbeing. The home ownership rate peaked at around 75% in the early 1990s but has now declined to around 65%," the report says.
“Housing affordability pressures are particularly evident in Auckland; this is significant as Auckland’s population growth is expected to continue to outstrip that of the rest of the country, accounting for almost half of all new households, in the next 20 years.
“Households that once would have transitioned from renting into home ownership cannot afford to buy a modest home, and rental affordability is becoming an issue for those in the $50,000 to $70,000 income range in Auckland,” it says.
More details in the print edition of NBR on Friday.
Chris Hutching
Wed, 11 Apr 2012
Wed, 11 Apr 2012
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Young Kiwis condemned to being renters
19984