o Population growth outstripped housing stock growth by 2.1 per cent between 2012 and 2017 resulting in the housing shortage.
o Net migration has ballooned from 32,853 over the five year period between 2007 and 2012, to 262,762 between 2012 and 2017.This has particularly impacted Auckland which is growing at a rate of 40,000 a year.
o Over the last decade Auckland has accounted for 30 per cent of new dwelling consents but received 47 per cent of New Zealand’s population growth.
o The construction industry and land development sectors have hindered housing affordability, probably because of misguided or indifferent government policies.
o The average construction cost of an average house – rather than apartment – has risen by 28% in the past five years, and by 180% over the past 20 years.
o Infrastructure development often creates a bottleneck, made more problematic by increasing debt faced by local councils. Auckland Council accounts for more than half local government debt at around $8.3 billion.
o Urban planning is key to unlocking land supply, allowing for higher density, so more houses can be built.
The Government’s solutions:
· KiwiBuild will provide scale and certainty to the industry to help develop new innovative approaches to building houses, and ensure KiwiBuild homes are built in an efficient and effective way.
· The Government will work with the private sector, establish a home building programme and establish large-scale urban development projects.
· The Government will also explore innovative ways to finance infrastructure for developments including infrastructure bonds.