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Deep Thinkers Online: "The Housing Crisis"

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Deep Thinkers Online: "The Housing Crisis"

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The property bubble in New Zealand is a major national economic and social issue. Since the early 1990s, house prices in NZ have risen considerably faster than incomes, putting increasing pressure on public housing providers as fewer households have access to housing on the private market. The property bubble has produced significant impacts on inequality in New Zealand, which now has one of the highest homelessness rates in the OECD and a record-high waiting list for public housing. Government policies have attempted to address the crisis since 2013 but have produced limited impacts to reduce prices or increase the supply of affordable housing. However, prices started falling in 2022 in response to tightening of mortgage availability and supply increasing. Some areas saw drops as high as around 9% - albeit from very high prices.
Unaffordable housing has produced profound impacts on New Zealand society. Between 1986 and 2013, home ownership dropped from 74% to 65%.

So – if there’s a housing crisis, where did it come from? Is it an excuse to justify yet another tax on those who have, ultimately for the net benefit of those who don’t have, after the Government clips the ticket? Surely one of the first steps in determining how to fix a crisis, would be to determine its source – What about the lack of new housing, or the fact our interest rates were kept ultra-low even though by all accounts, they should have actually increased.

See:
Economist explains why you can't afford a house anymore
New Zealand property bubble - Wikipedia
The Housing Crisis, Episode 145 - Podcasts NZ: New Zealand Podcasts
New Zealand Housing Crisis — Save the Children

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