More houses needed for our growing population

More houses needed for our growing population

7 October 2013

New Zealand’s largest real estate group Harcourts says rapid construction is needed to cope with the housing demands of our population, which is growing by 31,000 people each year.

Statistics NZ has today revealed the number of people living in New Zealand on census night was 4,242,048 – which is 214,101 more people than at the last census seven years ago.

Harcourts New Zealand CEO Hayden Duncan says most of the population growth is centred in Auckland and Christchurch, and this is where housing affordability has become a problem.

“Prices have only risen sharply in Auckland and Christchurch. Construction simply has not kept up with demand. We need the government to make the consent process easier and more attractive to developers to build in our two largest cities.”

Mr Duncan says the recent Reserve Bank measures to stop rising house prices – namely tightening LVR restrictions – is frustrating as it does not address the real problem.

“Our population is growing and we need more houses. Adjusting LVR restrictions and interest rates won’t change that.

“It also impacts on parts of the country where the property market is not strong. Provincial New Zealand, Wellington, Dunedin and Hamilton do not have an issue with housing affordability, but as of 1 October things have got a lot harder for people wanting to purchase in these areas.”

The census has revealed population growth is slower than it was between 2001 and 2006, when it sat at an average of about 58,000 a year. This is cause for concern, Mr Duncan says.

“We have reached this housing shortage in Auckland and Christchurch when population growth is comparatively low. When growth speeds up again, as it inevitably will, we need to have the housing and infrastructure in place to cope. This is what the Government should be focusing on.”

ENDS

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