Media release: Housing crisis must be at top of political agenda

Media Release
23 January, 2017

Wellington (23 January 2017): Following this morning’s release of the 13th Annual Demographia International Housing Affordability Survey, The New Zealand Initiative urges the Government to make addressing our housing crisis a top priority in 2017.

The survey is a sobering read. In 2016, Auckland was fourth in the global list of the most severely unaffordable housing markets (out of 10), beaten only by Hong Kong, Sydney and Vancouver.

The Initiative’s Head of Research Dr Eric Crampton says, “San Francisco is an American poster-child for housing unaffordability. It is hemorrhaging people and jobs to cities with sensible land use planning and affordable housing. And now Auckland is even more unaffordable than San Francisco.”

“Fixing infrastructure financing and letting Councils better share in the benefits of urban growth has to be at the top of the policy agenda if New Zealand wants affordable housing.”

Over the past four years, the Initiative has produced a series of reports and opinion pieces on New Zealand’s housing crisis. Our recommendations are focused on working to make housing affordable again, as well as developing a strategy to ensure supply can keep up with growing demand.

Our research suggests a combination of the following:

  • A relaxation on height and density restrictions
  • The abolition of the Rural Urban Boundary
  • Alternative ways of funding urban infrastructure such as Municipal Utility Districts
  • Financial incentives for councils to increase the housing supply, such as keeping the GST component of every new development project.

The Initiative looks forward to next year’s Survey and hopes to see Auckland move out of the red list of least affordable cities.

ENDS

Dr Eric Crampton is available for comment. Please contact him on +64 21 233 4527

Media contact:

Simone White, Communications Officer
The New Zealand Initiative
Phone: +64 4 494 9109
Mobile: +64 21 2937 250
Email: simone.white@nzinitiative.org.nz
**Please note Monday 23 January is Wellington Anniversary so our office will be closed. I am contactable on my cellphone.

About The New Zealand Initiative
The New Zealand Initiative is an evidence-based think tank and research institute, which is supported by a membership organisation that counts some of the country’s leading visionaries, business leaders and political thinkers among its ranks.

Our members are committed to developing policies to make New Zealand a better country for all its citizens. We believe all New Zealanders deserve a world-class education system, affordable housing, a healthy environment, sound public finances and a stable currency.

The New Zealand Initiative pursues this goal by participating in public life, and making a contribution to public discussions.

For more information visit www.nzinitiative.org.nz

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