I didn’t hear the piece, but on Morning Report today:
"we would like to see house prices drop so they are 3-4 time the median house-hold income."@metiria
— Morning Report (@NzMorningReport) July 26, 2016
The audio is here: “The Green Party co-leader Metiria Turei explains why Auckland house prices need to fall by as much as 40 to 50 per cent over the long term to make them affordable for first home buyers.”
Expect Metiria and The Greens to cop a lot of faux hysteria over this one, but it’s the simple truth. To make houses truly affordable, either wages have to triple right now (not going to happen) or house prices have to fall. Various bankers and analysts have said so recently, even Don Brash – who set a more ambitious target:
Don Brash: Auckland house prices need to drop by up to 60 per cent
Former National Party leader Don Brash has backed calls for a significant drop in Auckland house prices, saying they may have to fall by as much as 60 per cent – and politicians who won’t admit that are “dishonest”.
Brash’s comments come after former Reserve Bank chairman Arthur Grimes suggested a 40 per cent drop in house prices was needed to tackle housing affordability.
Brash, Reserve Bank governor from 1988 to 2002, said house prices in Auckland and other parts of New Zealand where “just wildly out of whack”. …
Not often you’ll catch Metiria Turei and Don Brash in agreement!
— Green Party NZ (@NZGreens) July 26, 2016
— Tim Watkin (@Tim_Watkin) July 26, 2016