After the failure of Kiwibuild to deliver 10,000 houses per year, the government has announced its latest plan to solve the housing crisis.
There are many facets that work together to create the housing crisis we face today. Price, affordability, demand and supply are all issues.
The latest announcement focuses on attempting to remove competition by reducing the impact speculators have in the housing market so first home buyers have more chances of purchasing. This is still only working within the current limited housing stock and building capacity.
The critical supply issue gets some mention but no changes. It is expected that investors will invest in more new houses because they will be exempt from changes to the bright-line test and interest deductibility policies. Nothing changes – business as normal for them.
Nothing is done to actually build new houses. Part of the solution would be to select 10 – 20 prefab and factory house producers and for the government to give them guaranteed orders for 100 or so houses per year for the next five years. This would enable them to build up their plant, systems and people. We would then have a steady supply of affordable, quality dwellings.
Then we take the infrastructure package and make it work by underwriting new roading and services as new land is opened up. This reduces the risk involved in land development. Local councils will need to be encouraged to free up land through zoning changes so that it can then be subdivided into affordable sections.
New Conservative says let’s get some practical solutions moving that actually help people, not just throwing a wet sponge on a forest fire and talking about it and trying to sound good.
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