Another housing bubble. Just what we need. House prices up 5.4% in a year, 7.8% in Auckland. Inflation is 1.6%.
Billions are being funneled into housing by banks who can make a buck off importing cheap credit from offshore and lend it to homebuyers here. There’s no real sources of income growth for them, so they’re pumping another housing bubble.
Just puts housing further out of reach for the rest of us. Businesses are still finding capital too expensive.
It couldn’t happen without the tax advantages that housing investment enjoys. The government could act. But this is National, does anyone expect solutions from them anymore?