Economists' new book tackles New Zealand's housing crisis

Economists' new book tackles New Zealand's housing crisis

Generation Rent: Rethinking New Zealand's Priorities, by Shamubeel and Selena Eaqub, offers pragmatic solutions to New Zealand's housing crisis

‘The time for denial is over, the time for inaction is over, the time for shirking responsibility is over. Now is the moment for our leaders to find the courage to tackle the mistakes of the past, to fix what is clearly broken, and to work together across politics and among different communities for a better New Zealand and a fair housing deal for all.’ – Shamubeel and Selena Eaqub

With this heartfelt call to action, husband and wife authors Shamubeel and Selena Eaqub sign off their timely and thought-provoking contribution to one of the pressing domestic matters of our times – home ownership.

In Generation Rent: Rethinking New Zealand’s Priorities, the Eaqubs – both professional economists – combine dispassionate analysis with passionate advocacy to produce a must-read treatise for anyone who is concerned by, or wants to know more about, the housing crisis in this country.

Simply put, increasing numbers of young New Zealanders are unable to buy their own homes. This short book, part of the influential BWB Texts series, assesses the scale of the problem and what it means for the future.

An accessible and compact read, illustrated with charts, graphs and applicable statistics, it describes the realities for a generation facing a market in which housing costs have soared relative to incomes, making the pervasive dream of owning a home either impossible, or blighted by life-long slavery to mortgage debt.

Contextualised with references to a broader social history, the book also shows why, if nothing is done to address the problem, a generation will remain shut out of home ownership; and how that will have far-reaching impacts on society – including increasing inequality and ‘ghettoisation’.

As renters themselves, the Eaqubs point out that Generation Rent are not just ‘property orphans’ but ‘cultural orphans’ – such are the social ramifications of home owning in New Zealand; and the state and status of the rental environment.

But as economists applying their combined experience and analytical skills to the problem, they also describe constructive solutions covering:
the rental market
the supply of houses
monetary policy
immigration
foreign buyers
money supply
the tax regime
the financial sector
They also provide a thoughtful critique of some of the more popular but flawed quick-fixes.

In an urgent and highly readable book, this persuasive and formidably equipped couple contend that home ownership is nothing less than an issue that will define the kind of culture and country we become – and that as a nation we must confront it.

‘To the politicians and policy-makers we say this: doing nothing is the road to a terrible New Zealand full of inequalities and frailties both in the near future and for many generations to come.’

ends

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