Affordable housing fail – we can’t rely on the private sector

Written By: - Date published: 9:20 am, August 17th, 2016 - 55 comments
Categories: housing, national, useless - Tags: , , ,

To the complete surprise of absolutely no one:

Land-bankers fail to build affordable housing

Affordability requirements in up to half of Auckland’s special housing areas look set to lapse because developers have not even applied for consents ahead of the areas disappearing next month.

The revelations have sparked claims of land-banking, and at least one developer is seeking legal advice on whether the affordable housing rules will still stick after that date.
…
The special areas, which gave fast-track consents in exchange for requiring that at least 10 per cent of new housing was “affordable”, will be disestablished on September 16 after the city’s new Unitary Plan comes into force.

They aim to boost housing supply and stem house price inflation that has seen the average home’s value soar to nearly $1 million.

Labour Party leader Andrew Little said he was “stunned” little more than a third of the areas had even got to the consenting stage.

“It just looks like the special housing area policy has been used to help build land banks,” he said. …

Another National failure.

Private sector developers want to make money, which means selling expensive units. There is no incentive for them to build “affordable” housing. If we want to house our people it is up to the government to build some bloody houses.

build-some-bloody-houses

55 comments on “Affordable housing fail – we can’t rely on the private sector ”

  • Comments are now closed

  1. Righty right 1
    17 August 2016 at 9:32 am

    No no no no it’s impossible to build affordable houses and it must not happen
    House prices are critical to the economy the status quo must be maintained at all cost
    The are so many people who depend on houseing to support there debt level many change would be a disaster we must not allow labour to build any houses state kiwi build none greed is good greed must continue more more more me me me

    • spikeyboy 1.1
      17 August 2016 at 5:06 pm

      John Key is not an Nzer. He is a traitor and he works for US imperialism. The empire has always demanded that local capabilities are made to wither and die. The huge investment in housing ensures that not much is left to build local capability. This will please the traitors masters and he will not be looking to do anything any time soon to change this

  2. save nz 2
    17 August 2016 at 9:44 am

    Hello, the issue has never been about land. NZ has plenty of it. It is the building of the houses that pose all the risks and costs, so therefore people don’t get that far. The RMA was a red herring to destroy the tiny amount of environmental protection we still have and divert from government social policies.

    Having fast track resource consenting actually makes the building side more risky as people get their resource consent through but all the problems were never revealed and solutions solved in the haste to grant it. Then more money needs to be spent, more time, and ultimately creates buildings that people don’t want.

    I personally know people who made millions out of the SHA in John Key’s electorate of Kumeu. They actually were not developers at all. Just sold it on when it’s value soared after the SHA was pushed in.

    The unitary plan will be another failure. There is absolutely zero incentive to provide affordable housing in NZ – why would you when you are looking to make a profit?

    Not only that, it has made things the same or even harder for people that do want to build an affordable house, a homeowner that just wants to create a single home for their family on a budget. Nothing for them in any of this.

    Nothing for solar or climate change or self sufficiency.

    Look around and you will see in Auckland the houses being built are large, for immigrants with some cash, gobbling resources. Not for Kiwis on local wages.

    One of the biggest problems for the poor is the lack of efficient and affordable public transport in NZ, which cuts off large amount of options for them for housing and work (probably 40% of Auckland is served extremely poorly by public transport).

    The politicians are completely out of touch on all the housing supply issues. And the left have been involved in a National charge which is environmentally destructive, socially is destructive (smaller homes being demolished for more expensive homes to be built) and also losing the hearts and minds of voters by fooled by Nat Lite or ‘on paper’ solutions.

    Give me Sue Bradford any day. If you are actually poor, you need someone who actually gives you help that is real, such as giving you money you are entitled to on your benefit. The current housing policy solutions are flawed and time consuming. In the short term they will make more problems and long term will fail to deliver.

    But everyone can pat themselves on the back for a cluster fuck of nothing.

    • Molly 2.1
      18 August 2016 at 10:15 am

      savenz, pretty much agree with all you have written.

      Was involved with a community project during the amalgamation and the first few years of the Unitary Plan, but in the end no progressive movement regarding communities and planning seems to have resulted.

      (When the SHA’s were proposed – Len Brown & Auckland Council – should have drawn the line in the sand, and let the brouhaha take place in full view of the media. The process seems to have been appropriated by the usual voices now.)

  3. dv 3
    17 August 2016 at 9:50 am

    AND Fletchers made PROFIT of 462 million this year.

  4. RedLogix 4
    17 August 2016 at 9:55 am

    I picked this one more or less at random. It’s at the top of the market when I search on this suburb that’s close to where we are. From experience I can assure you this blurb is accurate.

    As new 3 bedroom, plus study, 2 bathroom, 2 living with country outlook and only 4.5km from federation uni and close to all amenities.

    This stunning and unique home has 3 good sized bedroom’s plus study, master with ensuite and walk in robe and 2 other bedrooms with BIR. The stylish boutique kitchen has stainless steel appliances, large fridge cavity and huge walk in pantry and overlooks the open plan living and dining areas. With a separate living area ideal for a kids play room or parents retreat. The bright laundry has ample cupboard space for storage, a modern family bathroom, double garage with direct access to the home, central heating throughout, beautiful polished floating floors and enclosed rear yard is all sure to impress on inspection. Set in a peaceful quite court overlooking park lands and walking trails, also walking distance to high school, primary school, shopping centre and only 4.5km from Ballarat Fed Uni. An inspection is a must.

    $345.000 – $365,000

    http://www.domain.com.au/5-parkhaven-court-mount-clear-vic-3350-2012875185

    The same property anywhere near Auckland would be three times the price at least. The per metre building cost in NZ would be double.

    NZ is being ripped off. Period.

    • save nz 4.1
      17 August 2016 at 10:05 am

      +1 Redlogic.

      Yep, in spite of SHA, unitary plan, hand wringing for 3 years, more insulation, the highest level of immigration we have ever had in NZ for ‘skilled’ migrants like Chefs, we have a lot more new people needing houses in NZ, but no affordable houses built…. in fact affordable houses are being demolished at a fast rate, Hmmm

      wonder why homelessness is increasing?

      • Chooky 4.1.1
        17 August 2016 at 11:28 am

        +100 save nz…you state the crux of the problem…and it is a manufactured one

        …who is benefiting from this?

        ….time for ‘open the books’ on politicians’ finances and hidden trust accounts and family member accounts and businesses?

    • whispering kate 4.2
      17 August 2016 at 10:45 am

      Redlogix I agree, I have a close relative who has a beautiful 2 living 2 bath, 4 bedroomed townhouse in a great area in Baltimore Maryland, she is 10 min walk to down town where she works, has a park at the end of the street which has free tennis courts, free weekly concerts and free yoga in the park sessions. Their home is absolutely lovely and top notch, expensive fixtures and fittings, lovely hard wood floors and stairs, double glazed, proper plaster ceilings and a kitchen like a concord flightdeck. It has a fabulous roof garden and it also has car parking. It is in an area equivalent to any expensive inner city suburb in AK and she and her partner paid $425,000US last year – as you said we are being ripped off, what suckers we are.

    • vto 4.3
      17 August 2016 at 11:21 am

      “NZ is being ripped off. Period”

      Yep

      Building sector cartels.

      Fletchers

      Fletchers

      Fletchers

    • Philj 4.4
      18 August 2016 at 7:56 pm

      Whatever happened to the enquiry into the cost of building materials? Amongst other things the profit on the materials is what is driving the megas and Placemaker stores nationwide. They are in full view and they are pretty well protected by the vested interests in this country.

    • Philj 4.5
      18 August 2016 at 7:56 pm

      Whatever happened to the enquiry into the cost of building materials? Amongst other things the profit on the materials is what is driving the megas and Placemaker stores nationwide. They are in full view and they are pretty well protected by the vested interests in this country.

  5. mickysavage 5
    17 August 2016 at 10:04 am

    This shows why Auckland Council’s decision to not include affordable housing provisions in the Unitary Plan was such a mistake. The developers now have the option to see what they can get under the UP rather than have to comply with the affordable housing provisions in the SHAs.

    If the affordable housing proovisions had been kept in this probably would not be happening.

    • save nz 5.1
      17 August 2016 at 10:19 am

      The unitary plan and SHA were never about creating affordable Housing!!!! It has just spiked the cost of housing and speculation. People making all that money, are building huge mansions taking up builders and resources. The poor can’t get a builder in, with all the McMansions going up. Lots of happy developers and people voting National. Lot’s of National voters moving into their new McMansions. It’s far right strategy in motion.

      Land and planning do not create buildings. Having cheap labour does not create buildings. Having cheap substandard materials does not create buildings. Having councils with poor staff and questionable ethics does not create buildings. Having the Rebstocks of the world in charge of commerce commission and infrastructure firms does not create buildings.

      Golden homes used to change $1000 per square meter, now I see in Kumeu similar housing companies are building homes for 1 million dollars on house and land packages. The former affordable house building companies now charge unaffordable house prices… partly because the houses they build are larger and therefore more expensive.

    • Sabine 5.2
      17 August 2016 at 10:38 am

      sorry mate is ‘mistake’ is too polite a world for the guys at the council that just threw everyone who works for a living and does not yet own property in the City under the bus.

      The election turn out for Auckland this year will be worse then last time around. As for 4/5ths of the town there is absolutely no reason to vote.

    • Chooky 5.3
      17 August 2016 at 11:40 am

      +100 Micky savage…it is morally incomprehensible…and they also have the nerve to get rid of Maori land protections

      ‘Auckland Council plans to cull 1373 protected Mana Whenua sites’

      http://www.stuff.co.nz/auckland/73908757/Auckland-Council-plans-to-cull-1373-protected-Mana-Whenua-sites

      “Auckland Council plans to remove 1373 Mana Whenua sites from its Unitary Plan in an effort to speed up developments as the pressure increases to build more houses to cope with booming demand….

      ..it is theft…where is the Nact supporting Maori Party jumping up and down?

      (remember Bastion Point?)

      • Leftie 5.3.1
        17 August 2016 at 11:46 am

        Heaps of plus 1’s Chooky.

      • save nz 5.3.2
        17 August 2016 at 3:08 pm

        They got rid of Mana Whenua sites, they got rid of affordable quotients for housing , they undermine historic character and trees, please tell me why the Greens and Labour seem to support the unitary plan???

        The unitary plan is to make the rich richer and the home owners and people who actually care about the city (not just making a profit) disenfranchised and powerless in the process…

        • Chooky 5.3.2.1
          17 August 2016 at 7:23 pm

          so much for Council amalgamations and Super cities = no accountability to the people

          …and yes where are the Greens and Labour?!!!

  6. Draco T Bastard 6
    17 August 2016 at 10:38 am

    “It just looks like the special housing area policy has been used to help build land banks,” he said.

    National puts aside some areas for housing, gives it to developers and then the developers use it for super profits…

    I’d say that it’s working exactly as planned then.

    • indiana 6.1
      17 August 2016 at 10:52 am

      pretty smart really…super profits lead to higher tax takes, as only profits are taxed not revenue. Unless you are suggesting that these developers are not declaring their profits and going untaxed?

      • Draco T Bastard 6.1.1
        17 August 2016 at 11:21 am

        No, it’s really stupid as it undermines and eventually destroys society – as capitalism has been doing for thousands of years.

      • McFlock 6.1.2
        17 August 2016 at 12:03 pm

        lol

        banking land for a period and giving it away so you can recoup 30% of the developed profit is “smart”?
        Why not just do it yourself, now, and take 100% of the profit?

        Silly tory needs to think.

      • framu 6.1.3
        18 August 2016 at 8:48 am

        “Unless you are suggesting that these developers are not declaring their profits and going untaxed?”

        you do know what accountants are for dont you?

    • Leftie 6.2
      17 August 2016 at 11:44 am

      yep Draco T Bastard.

  7. AmaKiwi 7
    17 August 2016 at 10:56 am

    In any other competitive market “affordable” would be defined as what the buyers are able to pay, NOT the prices sellers can force the government to support.

    On the Texas/Mexico border converted containers have been made into functional homes for $7,000 NZD per unit (less land cost). Each has a kitchen, bath (shower, not tub), and 2 sleeping rooms. Clean, dry, safe, insulated, good window light.

    Cut the sh#t. Demand shelters real people can afford, not what the construction monopoly wants to make a killing on.

    P.S. Surprise! Surprise! They are being built by a not-for-profit charity. I’d roll up my sleeves and help them here.

    • save nz 7.1
      17 August 2016 at 11:33 am

      Good job getting Auckland council to consent it though Ama Kiwi. Any sign of DIY affordable housing they go crazy and start litigation. Even if you did try to consent the containers you would find that it costs $30k development contributions, $12,000 to connect to water, $15,000 consent fees, $40,000 to connect to power, etc etc the list goes on…

      • AmaKiwi 7.1.1
        17 August 2016 at 1:07 pm

        save nz

        +1

        Thank you. As you intimate, our “system” has no intention of serving the “customers.”

        • save nz 7.1.1.1
          17 August 2016 at 3:16 pm

          The message from National and Auckland council is Fuck off, poor people. If you can’t afford Auckland, don’t live here. We want National voters here in Auckland. Lets makes our friends richer by pretending to change housing zoning for poor people… Ha ha, we just made millions, but aren’t going to build any houses for the poor, we’re building million dollar houses and selling off state houses.

          I just can’t believe why so many people fall for it…or can’t get a clear message out there about what is happening.

  8. Adrian 8
    17 August 2016 at 11:04 am

    “Labour leader Andrew Little agreed house prices in Auckland should cost in the “ballpark” of $500,000 as an affordable level under the party’s new policy.”
    http://www.stuff.co.nz/national/politics/81758324/Auckland-houses-could-cost-ballpark-of-500k-under-Labour-housing-package….

    Average wage for experienced cleaner in New Zealand $32,000
    http://www.payscale.com/research/NZ/Job=Cleaner/Hourly_Rate

    Average rent for 3 bedroom house in South Auckland $450.00-$500 p/w
    http://www.enz.org/house-rents-auckland-south.html

    So assuming there is another part time wage coming into this house hold, lets say this family is earning $50.000 p/y or about $960 p/w, already they are paying about half that on rent, after all other fixed costs, they would obviously never be in the position to come anywhere near buying an ‘affordable’ house at $500.000, simply that is never going to happen.
    In other words, according to Key’s and Little’s own housing policies, people working on minimum wages, even long term experienced workers on minimum wages, will never be able to buy their own house is most major cities in NZ, effectively making them rent slaves for their lives.

    Labour is not working for working people and the poor, and must do better.
    New Zealand Labour must turn Left.

    • BM 8.1
      17 August 2016 at 11:34 am

      Unless you get the cost of the land down to under 100k per section then you won’t get anything cheaper than half a million in Auckland.

      • dv 8.1.1
        17 August 2016 at 12:36 pm

        Interesting.
        In TAKAKA a new build on a $100 section is about $300k for basic house (Incl land)

      • AmaKiwi 8.1.2
        17 August 2016 at 4:42 pm

        BM, the troll.

        “Unless you get the cost of the land down to under 100k per section . . . ”

        There are two 18 hole “private” golf courses within 15 min. of my house. They pay pepper corn rents and no rates. Membership is “private” but the land is owned by you and me.

        Cut them to half. Use half for LOW cost apartments and town houses ($150,000 – $200,000) and the other half for public parks. If it’s public land, use it for the benefit of the wider public.

        • Molly 8.1.2.1
          18 August 2016 at 10:26 am

          I’d think really carefully about getting rid of the green spaces. By all means get rid of the current “tenants” – but considered planning would give us public commons land that mitigated the effect of higher density housing.

          At present our parks in lower socio-economic areas are often sports parks, empty of life and community when games are not on, and only vital during the weekends with a transitory community of home players and visitors.

          Auckland – along with higher density housing – needs community owned and designed public spaces. Not consultant planned and contractor implemented.

          If re-appropriated golf courses are to be used – then council should allow – even better – help implement – development design that showcases affordability, community and environment.

    • Righty right 8.2
      17 August 2016 at 11:47 am

      That’s why we headed for a crash the disconnect to actual income levels is beyond any reason even 500000 isn’t affordable
      I don’t think anything can stop a melt down

  9. save nz 9
    17 August 2016 at 11:47 am

    The first thing the councils need to do is to start putting the cost of contributions based on size of dwelling rather than $ amount that the building consents cost. Then they should have very cheap or free costs for affordable dwellings. It should be free to put on solar and so forth and options NOT to connect to the grid as part of the building package. That way people can avoid water, power and other costly monopoly connections.

    There should be free and quick consents for plans that could be designed by architects like state houses for mass dwellings that are designed for affordable family living.

    • Molly 9.1
      18 August 2016 at 10:32 am

      Valued today for their high-quality materials, the Sears and Aladdin et al kitset homes in America were self-builds for many.

      These houses were precut – all labelled and ranged from small to huge.

      Advances in technology in building, has not increased the choice available.

      It has made the requirement for “experts” entrenched.

  10. b waghorn 10
    17 August 2016 at 1:02 pm

    I assume the labour mayoral candidate for auckland is in full support of labours ‘Kiwi Build’

  11. TheBlackKitten 11
    17 August 2016 at 8:44 pm

    When you don’t have enough houses, you darn well stop all immergation.

    • save nz 11.1
      18 August 2016 at 10:39 am

      ditto TheBlackKitten, stop lazy immigration when as well as not enough houses, you don’t have enough jobs either or enough public transport.

  12. Instauration 12
    17 August 2016 at 9:16 pm

    Large property developers – those with the capacity to secure the large and newly provisioned parcels of residential space – will never deliberatey deliver finished dwellings to a scale that will depress prices to an affordable level.
    Think OPEC – supply is managed to ensure optimal price of the resource.
    The relevant resource here is finished dwellings – that people can use.
    The raw material – land (like OPEC’s oil), will otherwise be stockpiled to ensure maximum return.
    Unless there are clever and politically astute conditions (to kill land banking) imposed upon the provision of the newly released raw material – say with land, “Build and provision within 24 months – or face a substantive developer tax on any subsequent sale”
    Then we will see either;
    1: A scale in the provision of dwellings that induces “oversupply”
    2: A negative influence on the price offered for development land.

    Either outcome is good.

    Else excessive profit for Fletcher and ilk and failure of affordable living will be manifest,

    • Molly 12.1
      18 August 2016 at 12:20 pm

      “Large property developers – those with the capacity to secure the large and newly provisioned parcels of residential space – will never deliberatey deliver finished dwellings to a scale that will depress prices to an affordable level.”

      QFT.

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    BeehiveBy beehive.govt.nz
    6 days ago

  • Government backing mussel spat project
    The Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Government focused on getting people into work
    Benefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Clean energy key driver to reducing emissions
    The Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Earthquake-prone buildings review brought forward
    The Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Thailand and NZ to agree to Strategic Partnership
    Prime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Government consults on extending coastal permits for ports
    RMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Inflation coming down, but more work to do
    Today’s announcement that inflation is down to 4 per cent is encouraging news for Kiwis, but there is more work to be done - underlining the importance of the Government’s plan to get the economy back on track, acting Finance Minister Chris Bishop says. “Inflation is now at 4 per ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • School attendance restored as a priority in health advice
    Refreshed health guidance released today will help parents and schools make informed decisions about whether their child needs to be in school, addressing one of the key issues affecting school attendance, says Associate Education Minister David Seymour. In recent years, consistently across all school terms, short-term illness or medical reasons ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Unnecessary bureaucracy cut in oceans sector
    Oceans and Fisheries Minister Shane Jones is streamlining high-level oceans management while maintaining a focus on supporting the sector’s role in the export-led recovery of the economy. “I am working to realise the untapped potential of our fishing and aquaculture sector. To achieve that we need to be smarter with ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Patterson promoting NZ’s wool sector at International Congress
    Associate Agriculture Minister Mark Patterson is speaking at the International Wool Textile Organisation Congress in Adelaide, promoting New Zealand wool, and outlining the coalition Government’s support for the revitalisation the sector.    "New Zealand’s wool exports reached $400 million in the year to 30 June 2023, and the coalition Government ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Removing red tape to help early learners thrive
    The Government is making legislative changes to make it easier for new early learning services to be established, and for existing services to operate, Associate Education Minister David Seymour says. The changes involve repealing the network approval provisions that apply when someone wants to establish a new early learning service, ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • RMA changes to cut coal mining consent red tape
    Changes to the Resource Management Act will align consenting for coal mining to other forms of mining to reduce barriers that are holding back economic development, Resources Minister Shane Jones says. “The inconsistent treatment of coal mining compared with other extractive activities is burdensome red tape that fails to acknowledge ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • McClay reaffirms strong NZ-China trade relationship
    Trade, Agriculture and Forestry Minister Todd McClay has concluded productive discussions with ministerial counterparts in Beijing today, in support of the New Zealand-China trade and economic relationship. “My meeting with Commerce Minister Wang Wentao reaffirmed the complementary nature of the bilateral trade relationship, with our Free Trade Agreement at its ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Prime Minister Luxon acknowledges legacy of Singapore Prime Minister Lee
    Prime Minister Christopher Luxon today paid tribute to Singapore’s outgoing Prime Minister Lee Hsien Loong.   Meeting in Singapore today immediately before Prime Minister Lee announced he was stepping down, Prime Minister Luxon warmly acknowledged his counterpart’s almost twenty years as leader, and the enduring legacy he has left for Singapore and South East ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • PMs Luxon and Lee deepen Singapore-NZ ties
    Prime Minister Christopher Luxon held a bilateral meeting today with Singapore Prime Minister Lee Hsien Loong. While in Singapore as part of his visit to South East Asia this week, Prime Minister Luxon also met with Singapore President Tharman Shanmugaratnam and will meet with Deputy Prime Minister Lawrence Wong.  During today’s meeting, Prime Minister Luxon ...
    BeehiveBy beehive.govt.nz
    1 week ago

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