A good piece from Duncan Garner yesterday:
Some home truths for a Government missing in action
How committed is the Government to putting the brakes on the house price crisis? Simple – they’re not.
Too many people are doing very nicely thanks very much (and they probably all vote National).
It is, as financial commentator Bernard Hickey said recently, the dirty little secret of the housing boom. Truth is National has to look after these people. Collapsing the market, prices and their equity is not an option. Which means torment for house hunters in some parts of the country where prices have gone nuts.
There are 59 Auckland suburbs with an average price of over $1 million. Dozens more are knocking on the door of that exclusive club. So we have a problem for people trying to get into the market. And what has the Government done? Not much, if anything at all. They believe in the market.
The previous government also stood by as prices soared and the working poor were squeezed. But this lot have fuelled the fire by overseeing record immigration. Latest figures show 67,600 new migrants called New Zealand home over the last year. … We have poured fuel on the flames. We have stoked demand and done little to resolve supply. Now people are missing out.
The horse has bolted. People are suffering. The time for action was years ago. Any major move now looks belated and driven by the polls.
Similar pieces could be written about the government’s inaction on poverty, pollution, the rising debt, carbon emissions, the use of NZ as a tax haven, etc. 8 years of neglect and the cracks are showing.