Tuesday, January 24, 2006

Housing wows caused by poor policies not growth

Land strangulation policy not rate of growth is denying Aucklanders a chance of home ownership according to Manukau City councillor Dick Quax.

"I am not surprised at the findings of the Demographia International Housing Affordability Survey showing that the Auckland housing market is considered to be amongst the world's most severely unaffordable".

The survey rates all major urban housing markets in Australia, Canada, Republic of Ireland, UK, US and New Zealand.

It takes Aucklanders 6.6 years' full wage or salary to pay off a house.

At the other end of the scale it takes a person living in the Canadian city of Edmonton just 2.8 years full salary to pay off a house.

"It had nothing to do with the rate of growth as claimed by some. Many cities growing at a faster rate than Auckland are not experiencing the housing unaffordability of Auckland. It is those cities, such as Auckland which are following an "urban containment" policy or strangling the supply of land to the market are the most severely unaffordable".

"The young, middle and low income earners in Auckland have very little chance of ever being able own their house. Home ownership has dropped dramatically over the last decade as the land strangulation policies bite".

"In New Zealand society home ownership adds to the quality of life we enjoy. Lack of home ownership means that there is less social cohesion and poorer education outcomes for children as parents move more frequently. Home ownership provides an investment in which we have confidence and provides a form of compulsory saving. Homeownership allows retired people to lead better lifestyle through mortgage free home ownership".

"It is about time we recognised that heavy-handed regulation of the supply of residential land carries a significant economic and social costs".

ENDS

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