I'm inclined to agree. Shortages are simply an intractable backdrop against which interest, and monetary policy generally, serve to exacerbate the problems that shortages cause.
owning and renting are two different things. And renting to use for a while should never cost more then owning does, and currently renters pay the mortgage, the interest, and what ever else the owner wants out of the property.
btw, my mortgage that i pay currently is 200$ per week.
you can't even rent a dog kennel for that amount anywhere in NZ.
I reckon, my mortgage is $210 a week, if I rented the same house it would be double, and with no return. Free insulation, cheap rates, I could also halve that if I got a flatmate (which I may do once my kids leave). I don't take this for granted, I realise I'm one of the lucky few.
Have to strongly disagree with you there RL, we are in our first own house (nearly freehold) after renting for 30+years the last 15 of those with three children, owning your own home has for us probably been pretty similar, maybe a bit more expensive but not a lot, and especially when you take into account all the benefits…the main one is not having to deal with Ma&Pa landlords they are generally like spawns from hell, they have made renting a fucking nightmare, it is awful, and no country that has the resources NZ has should let it’s citizens endure that type of life…welcome to free market liberalism I guess, markets operating just as they should…Thanks David Lange.
Gone are the old days when you would rent a house and live in it for years and hardly be bothered as long as you paid your rent and maintained the property…our last ten years of renting were a disaster (with one exception) as far as landlords went…even if owning a home was/is more expensive, how can you put a price on the endless stress and worry and more importantly the hundred of subtle ways it damages and undermines children having little to no long term home security.
Owning a home provides security that no amount of rental law cannot.
The trouble is that house prices do not reflect the cost of owning a home. They reflect the cost of the expected medium-term capital gains (post bright-line). It wasn't a problem when they reflected the expected gains upon retirement and downsizing, but now who honestly expects to be in that house for thirty years? Or do they expect to flip it in ten years or so?
Agree with the security bit. I've seen the pro's and cons of home ownership debated at length in New Zealand literature. They're pretty even.
I'd like to see some proper policy work done on the effects of Andrew Little's current extension of the Bright Line test, and the likeley extension to 10 coming up. Doesn't seem to have made much difference to house prices at all – so if it's not working as intended it should be removed.
Perhaps that is a point of the Easton paper – no one issue will solve the housing crisis. After all the current presumption of intent is flawed, but reversing it would mean that gains up to the time legislation takes effect are likely to remain tax free, so most people would not pay much tax for many years; but owners of rental properties may hold for longer to defer the payment. Requiring a bigger amount of real (not borrowed) equity may be possible , but that would be easier if we increased wages so that the government does not need social welfare or Working for Families to enable new home buyers to afford to live with a family.
I have a good landlord. Doesn't put the rent up every week etc. . But a batten holder wore out 8 months ago – and it only got fixed last month – no bedroom light all winter. Rentiers are oppressors, even the the good ones.
And of course the inability of contemporary NZers to afford their own homes is the final disproof of neoliberalism. It was supposed to make us more prosperous if you remember – on the contrary, it has impoverished us. Voters, looking at neoliberals think: "Were you really that stupid that you swallowed the hype in spite of our warnings? Or were you just corrupt?"
Because their speculative growth is entrenching even more deeply NZ's trans-generational class system.
Even if a full-time worker can rustle up a 10-20% deposit, I strongly suspect most NZers probably wouldn't earn enough to service the mortgage on a median-priced house.
For me, it was break-even with no margin for error five years ago. Now? It's a joke. And I have a good job, no dependants, and a retirement fund, but houses are more than twice the price. Almost literally – I looked up that house recently. It's gone from $230k to $450k. Has any actual worker's salary doubled in five years?
I'm kinda waiting for evidence of the K-shaped economy to hit.
And it's indisputable that salaries haven't kept up with house prices.
But if Easton had tracked house prices, salaries, and national home ownership, he would have seen no collapse in average ownership at all. Even as prices skyrocketed.
In fact we're still better than nearly all other developed countries for home ownership.
Easton calls it speculation. 65% of us call it risk management.
Easton’s analysis is sound and he is not alone with the conclusions….it has been well canvassed and the only major dispute is around to what degree other factors impact.
stating 65% mean sweet FA unless you also state from where it came and what the trend is…as you well know.
and I too have checked…"and falling"
"Home Ownership Rate in New Zealand is expected to reach 64.29 percent by the end of 2020, according to Trading Economics global macro models and analysts expectations."
And as outlined below there is more to it than just economics – it's the relentlessly increasing age of first marriage that also means that 20-29 age group just aren't interested in buying homes.
Another factor is the rise in divorce rates – usually one partner will finish up renting for a period afterward.
This doesn't discount the obvious affordability issue in play – but it does suggest there are often more factors involved than the headlines make out.
Of course, unmarried people dont buy houses….how could i miss that.
And the 20 -29 year olds arnt interested in buying homes….because they increasingly cant afford them….the same applies to those in their 30s…and the ones that eventually can take considerably longer to raise the increasing deposits.
Those decreased ownership rates in the cohorts coming through are going to have a major impact on the total ownership rates as the proportionately higher ownership rate cohort approaching 70 move into care/die
30 per cent of homes are owned by people who only own one home.
Another 13 per cent is owned by people who have two homes. Six per cent is owned by people who have three homes. Ten per cent is owned by people who have between four and six homes.
And another 10 per cent is owned by those who have between seven and 20 homes.
I would argue one can own multiple houses but only one is ever your home but that's an aside.
To do a real comparison a similar breakdown as above is needed for the historical data.
And that's households (where homeowners are a member of the household). Only half of individuals own the home they live in, directly or indirectly (same link, p34).
Additionally, although $value of lending to first home buyers peaked last year at 20%, the proportion of actual borrowers at the time was 12%.
The longer this situation goes on, the more nailed in the inequity will be.
If by "generation" you mean the peak in the early 1990s, I'd agree.
If by "generation" you mean back to the 1960s when everything about New Zealand was supposed to be our egalitarian apogee, no not really it's the same.
Yup – the demographics don't lie. Before Rogergnomics the median age at marriage was around 23. After it was 33. Poverty. The social science folk can give the lie to every pretense of good governance.
That would be of course because the data aren't set up to capture it.
Measure GDP alone and you could imagine Rogergnomics as something other than a brutal failure. But you would be letting data trickle through your fingers – politically convenient no doubt.
The first world nations have been lying to themselves for a good while now – with falling "labour force participation" instead of unemployment and so on. The lies are getting pretty thick. If everything were apples home ownership wouldn't have had to fall, nor would child (the only politically acceptable poverty) be so high.
All those suicides blamed on mental health too – same trick the Soviets resorted to. Our governors have no standards at all.
Hardly – I'm not trying to extend my assertion around the world – it was you that had to reach beyond NZ to grasp at the straw that because other countries experience lesser forms of the same graphic failure, the brutal sham that was Rogergnomics was somehow excusable.
We all understand the appeal to the vanity of policy makers of a ‘great leap forward’, and I use Mao’s term deliberately, because Rogergnomics was every bit as hubris-laden, destructive, misguided, and undemocratic.
Liberals when their desire for ‘freedom’ becomes a repudiation of society and manifests as libertarianism and neo-liberal economic theories.
So nowhere have I attempted to excuse Rogernomics – that’s a just a figment of your imagination. But to attribute everything bad that ever happened in this country to this singular cause is another kind of fail.
It isn't the price of the house that is relevant to the person buying it. It is the cost of servicing the mortgage. Here are a few graphs on housing costs. Between 2008 and 2019 the average household income in Auckland went up by about 50%. Thar was from $61.4k to $95.2k. The average weekly payment for people who had a mortgage only went up by about 20%. That was from $384/week to $460/week
When you look at the cost of buying a home the most important factor is going to be the mortgage interest rate. First mortgage rates in 2008 were about 8%. They are now, if the ASB quote in front of me is typical 2.29% for a 1 year fixed rate.
The second most important factor is going to be the deposit. If house prices go up by 17%, as they typically did last year the deposit will do the same and that is really going to hurt the first home buyer.
A note. This is not an area on Economics in which I have much knowledge or experience so all the numbers I have reference may be irrelevant. At a first glance though it wouldn't appear that people are much affected by the price rises while interest rates are dropping to the point that in real terms the money is free to borrow.
The commentary in the Stats NZ work on this supports this cost-of-mortgage issue. But it fails the obvious corollary: as prices go up, so too does the potential equity for deposits from Bank Of Mum And Dad (especially when they downsize, or die).
Even without interest, the average borrowing for a first home loan is almost half a mil.
That ain't chump change to pay back weekly, by itself.
People buying their first homes need to be doing damned well.
Unless you can figure out some way of paying the same price while not borrowing so much, the two figures are pretty good substitutes for each other when it comes to looking at why people can't afford to own their own hovel.
I am not disputing that it isn't easy. Mind you I can remember when my mortgage rate was 13%. That was back in the 70's and I knew people who were paying more.
However I had a quick look at payments using the BNZ calculator.
On an $800k house with a 20% deposit and a 30 year term at 2.29% you pay $1,132,fortnight. On a property at half the price, and half the deposit for the same 30 years loan you would pay exactly the same amount if you were paying 8.5% which would have been quite likely back in 2008. Half the amount borrowed but the same $1,132 at the much higher interest rate.
On the monthly income for a household at the average number of $$95.2k/year you would be paying 31% of your income on your mortgage.
Where did the first home buyer get the extra $80k for the 20% deposit in 2020? Their income only went up by less than 50%. And their rent payments are through the roof, as well, so their savings might struggle to hit a wage inflation equivalent.
"The second most important factor is going to be the deposit. If house prices go up by 17%, as they typically did last year the deposit will do the same and that is really going to hurt the first home buyer."
I don't know. I haven't been in the market for a mortgage for 30 years. We did save our deposit for our first house in about 18 months though by living on about half of one of our two incomes. The total furniture we had in a one bedroom flat cost us about $100 dollars. I will admit we had one 10 year old car though. Entertainment was limited to barbecues with friends or going to the beach.
Well the Chinese especially tend to regard their elders with considerable respect – and not so much of the 'ok boomer'.
The point is that if you want to be prosperous it takes more than just a good job – you need to plan ahead and use each generation's capacities and abilities for the benefit of the entire family.
And of course rising divorce rates over the period in question also have their impact – nothing destroys family wealth over time quite like it.
The point is that if you want to be prosperous it takes more than just a good job – you need to plan ahead and use each generation's capacities and abilities for the benefit of the entire family.
Only in a society with entrenched inequity and social mobility that does not reflect individual merit.
It's not a binary choice. Yes merit and mobility are valued highly in the West – but a well ordered and stable family over multiple generations will always have an advantage.
Why not? And how would you prevent family success from benefiting the whole family? Are parents to be prohibited from helping their children if they can?
Insisting on nothing but a pure meritocracy seems an absolutist view to me.
In a meritocracy, it doesn't matter if parents help their kids or not. That's the point.
But my objection to the current situation isn't that NZ isn't a perfect meritocracy. My objection is that we're becoming less of a meritocracy. You can cloak it in "respect for elders" and "family stability" all you want, it's the simple greed of a previous generation turning into a dynastic problem.
I've said it before and I'll say it again: his solutions to the problems he described were bunk, but Marx was a spot-on critic of capitalism and feudalism. They're just two sides of the same coin. The Duke's ancestor hit peasants over the head with clubs, the magnate's ancestor paid other people to hit workers over the head with clubs.
So today to save a $160k deposit in 18 months from one income, that would be an income of $100k a year.
Basically, the govt needs to either build shitloads of affordable homes or build shitloads of state houses and have say a HNZ 5% stock turnover for modernisation in addition to a general increase in stock levels, sold through a rent to own equity deal.
Because this is a formalisation of an intergenerational class system. Not the one we've been ignoring and pretending doesn't exist, an actual regression back towards feudalism. Not all the way back, but a definite step back.
"So today to save a $160k deposit in 18 months from one income".
A minor correction but it wasn't one income. It was one and a half incomes. We lived on one quarter of our after tax income and saved the rest.
That was quite common at the time. We were, like all our friends, trying very hard to get to own our own home. We were also willing to live a great deal further out from the CDB than many people seem to be willing to do today and lots of people did not have a car.
I found it quite hilarious a couple of years ago to read about a 30 something woman who was complaining that she couldn't afford a first house. Her idea of a first house was 4 bedrooms and 2 bathrooms in Roseneath, Mt Vic or Mt Cook. There was no way she was going out to the distant suburb of Hataitai. If you aren't a Wellingtonian look it up. It would be comparable to refusing to live way out in the wilds of Epsom I suppose.
This article is in some ways quite good on looking separately at both sides of the housing market. Though I didn't really like Eastons alternative of demand backed by offshore financing, as this doesn't either fit the facts.
First the banking system doesn't lend out existing deposits but instead creates additional deposits when extending loans. Second the fact that a trade deficit was occuring simultaneously to an expansion in borrowing will mean an expansion in overseas ownership domestically, but a lot of the overseas trades are not in $NZ so in what sense is that supporting lending into a housing market almost exclusively trading in $NZ. This explanation is equally likely to misslead as the explanation it replaces.
The bank may create credit but they are still required to hold reserves and the size of those reserves determines how much credit they can create…..and a glut of international liquidity looking for a safe home and return knows which side their bread is buttered on.
Your talking about 'capital' not reserves there (especially in the context of overseas funding), and capital is still not a constraint on lending. It might place limits on the interest rates accessible in some cases.
But the simpler explanation is just that a lot of those recent house sellers at the time also took overseas trips.
Wrong …the amount of credit a bank can create is directly linked to their reserves and that capital can (and does) come from offshore…the interest rates are a consequence of the ability to service the level of debt (credit).
The country didn't instigate a housing bubble based on money it borrowed overseas. That would be a very missleading claim, and I expect you would not claim it happened either. Yes, the implication is that the country can manufacture as much capital as it needs to facilitate lending for itself.
the glut of money sloshing around the world looks for a home and preferably a safe one with good access…..where better than backing the banks of open economies, ones with a political class wedded to the idea of free capital flows. The Banks use that increased reserve capacity to grow their loan books and thereby increase their profits, everybody wins,,,except for the poor mugs being milked for every available penny when they try and enter the housing market,
And the Gov is trapped because if they seriously try to do anything about housing affordability that capital in the banks reserves will find a new home …and probably not in NZ.
Capital outflow equals negative growth not to mention all the associated problems
Under the Pope’s guidance, these “guardians” aim to “reform capitalism into a powerful force for the good of humanity” and create a “more inclusive, sustainable and trusted form of capitalism.”
Capitalism has lifted billions of people out of poverty, but many in society have been left behind and the planet has paid a price. There is a moral imperative to address this challenge, and we are taking action.
What a lot of people here have missed is that many boardrooms across the US and EU have been quietly working toward all kinds of social and economic reforms. But because it's 'fucking capitalists' it never gets onto our radar.
It's a theme I'd have picked up on more – but every time I type the word 'capitalist' a kind of red mist descends. eg McF predictably above.
Well history is tilting in ways never encountered before.
Basically we've tried three major economic variants – capitalism, communism and fascism – and of the three only the first has shown the necessary evolutionary capacity to adapt to the new world we're heading into.
It's all about the demographics. Young adults are consumers of goods and services, mid-aged adults are investors in capital and services, and retired adults are consumers of capital. At least in very broad terms.
For the first time in all of our history our populations are now quite rapidly becoming dominated by late adult to retired aged populations. Fully half of all Boomers will retire in 2022. Suddenly growth is no longer possible or even desirable. And none of the economic systems we've ever attempted have ever been exposed to this scenario – but I'd put my bet on capitalism being the one most likely to evolve to meet the challenge.
major economic variants – capitalism, communism and fascism
Could you perhaps explain the differences between these 'economic variants'? Particularly the economic differences between capitalism and fascism.
Thanks in advance.
I see China are trying to join the TPP as is the UK. Does this mean that a large state actor like China or the UK could sue our government if we don't toe their line with regard to commercial companies. Given that a lot of chinese commercial investment seems to have some sort of state back up how exposed does this leave us?
I'm pretty confused but is it time that the existing TPP members rolled back a lot of the not actual trading and tariffs parts of the agreement so that the grouping is less attractive to major players. It all seems to reduce our ability both domestically and internationally? Should a trade agreement affect domestic politics that much?
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Introduction: The allure of racing is undeniable. The thrill of speed, the roar of engines, and the exhilaration of competition all contribute to the allure of this adrenaline-driven sport. For those who yearn to experience the pinnacle of racing, becoming a race car driver is the ultimate dream. However, the ...
Introduction Automobiles have become ubiquitous in modern society, serving as a primary mode of transportation and a symbol of economic growth and personal mobility. With countless vehicles traversing roads and highways worldwide, it begs the question: how many cars are there in the world? Determining the precise number is a ...
Maintaining a safe and reliable vehicle requires regular inspections. Whether it’s a routine maintenance checkup or a safety inspection, knowing how long the process will take can help you plan your day accordingly. This article delves into the factors that influence the duration of a car inspection and provides an ...
Mazda Motor Corporation, commonly known as Mazda, is a Japanese multinational automaker headquartered in Fuchu, Aki District, Hiroshima Prefecture, Japan. The company was founded in 1920 as the Toyo Cork Kogyo Co., Ltd., and began producing vehicles in 1931. Mazda is primarily known for its production of passenger cars, but ...
Your car battery is an essential component that provides power to start your engine, operate your electrical systems, and store energy. Over time, batteries can weaken and lose their ability to hold a charge, which can lead to starting problems, power failures, and other issues. Replacing your battery before it ...
In most states, you cannot register a car without a valid driver’s license. However, there are a few exceptions to this rule. Exceptions to the RuleIf you are under 18 years old: In some states, you can register a car in your name even if you do not ...
Mazda, a Japanese automotive manufacturer with a rich history of innovation and engineering excellence, has emerged as a formidable player in the global car market. Known for its reputation of producing high-quality, fuel-efficient, and driver-oriented vehicles, Mazda has consistently garnered praise from industry experts and consumers alike. In this article, ...
Struts are an essential part of a car’s suspension system. They are responsible for supporting the weight of the car and damping the oscillations of the springs. Struts are typically made of steel or aluminum and are filled with hydraulic fluid. How Do Struts Work? Struts work by transferring the ...
Car registration is a mandatory process that all vehicle owners must complete annually. This process involves registering your car with the Department of Motor Vehicles (DMV) and paying an associated fee. The registration process ensures that your vehicle is properly licensed and insured, and helps law enforcement and other authorities ...
Zoom is a video conferencing service that allows you to share your screen, webcam, and audio with other participants. In addition to sharing your own audio, you can also share the audio from your computer with other participants. This can be useful for playing music, sharing presentations with audio, or ...
Building your own computer can be a rewarding and cost-effective way to get a high-performance machine tailored to your specific needs. However, it also requires careful planning and execution, and one of the most important factors to consider is the time it will take. The exact time it takes to ...
Sleep mode is a power-saving state that allows your computer to quickly resume operation without having to boot up from scratch. This can be useful if you need to step away from your computer for a short period of time but don’t want to shut it down completely. There are ...
Introduction Computer-Assisted Translation (CAT) has revolutionized the field of translation by harnessing the power of technology to assist human translators in their work. This innovative approach combines specialized software with human expertise to improve the efficiency, accuracy, and consistency of translations. In this comprehensive article, we will delve into the ...
In today’s digital age, mobile devices have become an indispensable part of our daily lives. Among the vast array of portable computing options available, iPads and tablet computers stand out as two prominent contenders. While both offer similar functionalities, there are subtle yet significant differences between these two devices. This ...
A computer is an electronic device that can be programmed to carry out a set of instructions. The basic components of a computer are the processor, memory, storage, input devices, and output devices. The Processor The processor, also known as the central processing unit (CPU), is the brain of the ...
Voice Memos is a convenient app on your iPhone that allows you to quickly record and store audio snippets. These recordings can be useful for a variety of purposes, such as taking notes, capturing ideas, or recording interviews. While you can listen to your voice memos on your iPhone, you ...
Laptop screens are essential for interacting with our devices and accessing information. However, when lines appear on the screen, it can be frustrating and disrupt productivity. Understanding the underlying causes of these lines is crucial for finding effective solutions. Types of Screen Lines Horizontal lines: Also known as scan ...
Right-clicking is a common and essential computer operation that allows users to access additional options and settings. While most desktop computers have dedicated right-click buttons on their mice, laptops often do not have these buttons due to space limitations. This article will provide a comprehensive guide on how to right-click ...
Powering up and shutting down your ASUS laptop is an essential task for any laptop user. Locating the power button can sometimes be a hassle, especially if you’re new to ASUS laptops. This article will provide a comprehensive guide on where to find the power button on different ASUS laptop ...
Dell laptops are renowned for their reliability, performance, and versatility. Whether you’re a student, a professional, or just someone who needs a reliable computing device, a Dell laptop can meet your needs. However, if you’re new to Dell laptops, you may be wondering how to get started. In this comprehensive ...
Te Pāti Māori are demanding the New Zealand Government support an international independent investigation into mass graves that have been uncovered at two hospitals on the Gaza strip, following weeks of assault by Israeli troops. Among the 392 bodies that have been recovered, are children and elderly civilians. Many of ...
Our two-tiered system for veterans’ support is out of step with our closest partners, and all parties in Parliament should work together to fix it, Labour veterans’ affairs spokesperson Greg O’Connor said. ...
Stripping two Ministers of their portfolios just six months into the job shows Christopher Luxon’s management style is lacking, Labour Leader Chris Hipkins said. ...
Tonight’s court decision to overturn the summons of the Children’s Minister has enabled the Crown to continue making decisions about Māori without evidence, says Te Pāti Māori spokesperson for Children, Mariameno Kapa-Kingi. “The judicial system has this evening told the nation that this government can do whatever they want when ...
It appears Nicola Willis is about to pull the rug out from under the feet of local communities still dealing with the aftermath of last year’s severe weather, and local councils relying on funding to build back from these disasters. ...
The Government is making short-sighted changes to the Resource Management Act (RMA) that will take away environmental protection in favour of short-term profits, Labour’s environment spokesperson Rachel Brooking said today. ...
Labour welcomes the release of the report into the North Island weather events and looks forward to working with the Government to ensure that New Zealand is as prepared as it can be for the next natural disaster. ...
The Labour Party has called for the New Zealand Government to recognise Palestine, as a material step towards progressing the two-State solution needed to achieve a lasting peace in the region. ...
Some of our country’s most important work, stopping the sexual exploitation of children and violent extremism could go along with staff on the frontline at ports and airports. ...
The Government’s Fast Track Approvals Bill will give projects such as new coal mines a ‘get out of jail free’ card to wreak havoc on the environment, Labour Leader Chris Hipkins said today. ...
The government's decision to reintroduce Three Strikes is a destructive and ineffective piece of law-making that will only exacerbate an inherently biased and racist criminal justice system, said Te Pāti Māori Justice Spokesperson, Tākuta Ferris, today. During the time Three Strikes was in place in Aotearoa, Māori and Pasifika received ...
Cuts to frontline hospital staff are not only a broken election promise, it shows the reckless tax cuts have well and truly hit the frontline of the health system, says Labour Health spokesperson Ayesha Verrall. ...
The Green Party has joined the call for public submissions on the fast-track legislation to be extended after the Ombudsman forced the Government to release the list of organisations invited to apply just hours before submissions close. ...
New Zealand’s good work at reducing climate emissions for three years in a row will be undone by the National government’s lack of ambition and scrapping programmes that were making a difference, Labour Party climate spokesperson Megan Woods said today. ...
More essential jobs could be on the chopping block, this time Ministry of Education staff on the school lunches team are set to find out whether they're in line to lose their jobs. ...
Te Pāti Māori is disgusted at the confirmation that hundreds are set to lose their jobs at Oranga Tamariki, and the disestablishment of the Treaty Response Unit. “This act of absolute carelessness and out of touch decision making is committing tamariki to state abuse.” Said Te Pāti Māori Oranga Tamariki ...
The Government is trying to bring in a law that will allow Ministers to cut corners and kill off native species, Labour environment spokesperson Rachel Brooking said. ...
Cancelling urgently needed new Cook Strait ferries and hiking the cost of public transport for many Kiwis so that National can announce the prospect of another tunnel for Wellington is not making good choices, Labour Transport Spokesperson Tangi Utikere said. ...
A laundry list of additional costs for Tāmaki Makarau Auckland shows the Minister for the city is not delivering for the people who live there, says Labour Auckland Issues spokesperson Shanan Halbert. ...
Te Pāti Māori co-leader Rawiri Waititi, and Mema Paremata mō Tāmaki-Makaurau, Takutai Tarsh Kemp, will travel to the Gold Coast to strengthen ties with Māori in Australia next week (15-21 April). The visit, in the lead-up to the 9th Australian National Kapa haka Festival, will be an opportunity for both ...
The Green Party has today launched a step-by-step guide to help New Zealanders make their voice heard on the Government’s democracy dodging and anti-environment fast track legislation. ...
The National Government’s proposed changes to the Residential Tenancies Act will mean tenants can be turfed from their homes by landlords with little notice, Labour housing spokesperson Kieran McAnulty said. ...
Green Party co-leader Marama Davidson is calling on all parties to support a common-sense change that’s great for the planet and great for consumers after her member’s bill was drawn from the ballot today. ...
A significant milestone has been reached in the fight to strike an anti-Pasifika and unfair law from the country’s books after Teanau Tuiono’s members’ bill passed its first reading. ...
New Zealand has today missed the opportunity to uphold the right to a clean, healthy, and sustainable environment, says James Shaw after his member’s bill was voted down in its first reading. ...
Today’s advice from the Climate Change Commission paints a sobering reality of the challenge we face in combating climate change, especially in light of recent Government policy announcements. ...
Minister for Disability Issues Penny Simmonds appears to have delayed a report back to Cabinet on the progress New Zealand is making against international obligations for disabled New Zealanders. ...
Ambassador Millar, Burgemeester, Vandepitte, Excellencies, military representatives, distinguished guests, ladies and gentlemen – good morning and welcome to this sacred Anzac Day dawn service. It is an honour to be here on behalf of the Government and people of New Zealand at Buttes New British Cemetery, Polygon Wood – a deeply ...
Distinguished guests - It is an honour to return once again to this site which, as the resting place for so many of our war-dead, has become a sacred place for generations of New Zealanders. Our presence here and at the other special spaces of Gallipoli is made ...
Mai ia tawhiti pamamao, te moana nui a Kiwa, kua tae whakaiti mai matou, ki to koutou papa whenua. No koutou te tapuwae, no matou te tapuwae, kua honoa pumautia. Ko nga toa kua hinga nei, o te Waipounamu, o te Ika a Maui, he okioki tahi me o ...
Paul Goldsmith will take on responsibility for the Media and Communications portfolio, while Louise Upston will pick up the Disability Issues portfolio, Prime Minister Christopher Luxon announced today. “Our Government is relentlessly focused on getting New Zealand back on track. As issues change in prominence, I plan to adjust Ministerial ...
Recreational catch limits will be reduced in areas of Fiordland and the Chatham Islands to help keep those fisheries healthy and sustainable, Oceans and Fisheries Minister Shane Jones says. The lower recreational daily catch limits for a range of finfish and shellfish species caught in the Fiordland Marine Area and ...
Energy Minister Simeon Brown has welcomed an important milestone in New Zealand’s hydrogen future, with the opening of the country’s first network of hydrogen refuelling stations in Wiri. “I want to congratulate the team at Hiringa Energy and its partners K one W one (K1W1), Mitsui & Co New Zealand ...
The coalition Government is delivering on its commitment to improve resource management laws and give greater certainty to consent applicants, with a Bill to amend the Resource Management Act (RMA) expected to be introduced to Parliament next month. RMA Reform Minister Chris Bishop has today outlined the first RMA Amendment ...
Overseas models for regulating the oil and gas sector, including their decommissioning regimes, are being carefully scrutinised as a potential template for New Zealand’s own sector, Resources Minister Shane Jones says. The Coalition Government is focused on rebuilding investor confidence in New Zealand’s energy sector as it looks to strengthen ...
Emergency Management and Recovery Minister Mark Mitchell has today released the Report of the Government Inquiry into the response to the North Island Severe Weather Events. “The report shows that New Zealand’s emergency management system is not fit-for-purpose and there are some significant gaps we need to address,” Mr Mitchell ...
Justice Minister Paul Goldsmith is today travelling to Europe where he’ll update the United Nations Human Rights Council on the Government’s work to restore law and order. “Attending the Universal Periodic Review in Geneva provides us with an opportunity to present New Zealand’s human rights progress, priorities, and challenges, while ...
Associate Agriculture Minister, Mark Patterson, formally reopened the world’s largest wool processing facility today in Awatoto, Napier, following a $50 million rebuild and refurbishment project. “The reopening of this facility will significantly lift the economic opportunities available to New Zealand’s wool sector, which already accounts for 20 per cent of ...
Hon Andrew Bayly, Minister for Small Business and Manufacturing At the Southland Otago Regional Engineering Collective (SOREC) Summit, 18 April, Dunedin Ngā mihi nui, Ko Andrew Bayly aho, Ko Whanganui aho Good Afternoon and thank you for inviting me to open your summit today. I am delighted ...
The Government is delivering on its commitment to bring back the Three Strikes legislation, Associate Justice Minister Nicole McKee announced today. “Our Government is committed to restoring law and order and enforcing appropriate consequences on criminals. We are making it clear that repeat serious violent or sexual offending is not ...
Foreign Minister Winston Peters has today announced four new diplomatic appointments for New Zealand’s overseas missions. “Our diplomats have a vital role in maintaining and protecting New Zealand’s interests around the world,” Mr Peters says. “I am pleased to announce the appointment of these senior diplomats from the ...
New Zealand is contributing NZ$7 million to support communities affected by severe food insecurity and other urgent humanitarian needs in Ethiopia and Somalia, Foreign Minister Rt Hon Winston Peters announced today. “Over 21 million people are in need of humanitarian assistance across Ethiopia, with a further 6.9 million people ...
Minister for Arts, Culture and Heritage Paul Goldsmith is congratulating Mataaho Collective for winning the Golden Lion for best participant in the main exhibition at the Venice Biennale. "Congratulations to the Mataaho Collective for winning one of the world's most prestigious art prizes at the Venice Biennale. “It is good ...
The Government is reforming financial services to improve access to home loans and other lending, and strengthen customer protections, Commerce and Consumer Affairs Minister Andrew Bayly and Housing Minister Chris Bishop announced today. “Our coalition Government is committed to rebuilding the economy and making life simpler by cutting red tape. We are ...
“China remains a strong commercial opportunity for Kiwi exporters as Chinese businesses and consumers continue to value our high-quality safe produce,” Trade and Agriculture Minister Todd McClay says. Mr McClay has returned to New Zealand following visits to Beijing, Harbin and Shanghai where he met ministers, governors and mayors and engaged in trade and agricultural events with the New ...
Prime Minister Christopher Luxon has completed a successful trip to Singapore, Thailand and the Philippines, deepening relationships and capitalising on opportunities. Mr Luxon was accompanied by a business delegation and says the choice of countries represents the priority the New Zealand Government places on South East Asia, and our relationships in ...
New Zealand is demonstrating its commitment to reducing global greenhouse emissions, and supporting clean energy transition in South East Asia, through a contribution of NZ$41 million (US$25 million) in climate finance to the Asian Development Bank (ADB)-led Energy Transition Mechanism (ETM). Prime Minister Christopher Luxon and Climate Change Minister Simon Watts announced ...
The Government is today releasing a list of organisations who received letters about the Fast-track applications process, says RMA Reform Minister Chris Bishop. “Recently Ministers and agencies have received a series of OIA requests for a list of organisations to whom I wrote with information on applying to have a ...
Attorney-General Judith Collins today announced the appointment of Wellington Barrister David Jonathan Boldt as a Judge of the High Court, and the Honourable Justice Matthew Palmer as a Judge of the Court of Appeal. Justice Boldt graduated with an LLB from Victoria University of Wellington in 1990, and also holds ...
Education Minister Erica Stanford will lead the New Zealand delegation at the 2024 International Summit on the Teaching Profession (ISTP) held in Singapore. The delegation includes representatives from the Post Primary Teachers’ Association (PPTA) Te Wehengarua and the New Zealand Educational Institute (NZEI) Te Riu Roa. The summit is co-hosted ...
A stopbank upgrade project in Tairawhiti partly funded by the Government has increased flood resilience for around 7000ha of residential and horticultural land so far, Regional Development Minister Shane Jones says. Mr Jones today attended a dawn service in Gisborne to mark the end of the first stage of the ...
Foreign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul. “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...
Science, Innovation and Technology and Defence Minister Judith Collins will next week attend the OECD Science and Technology Ministerial conference in Paris and Anzac Day commemorations in Belgium. “Science, innovation and technology have a major role to play in rebuilding our economy and achieving better health, environmental and social outcomes ...
Prime Minister Christopher Luxon held a bilateral meeting today with the President of the Philippines, Ferdinand Marcos Jr. The Prime Minister was accompanied by MP Paulo Garcia, the first Filipino to be elected to a legislature outside the Philippines. During today’s meeting, Prime Minister Luxon and President Marcos Jr discussed opportunities to ...
The Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...
The Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...
Local Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners. “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...
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 - ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
I was initially resistant to the idea often suggested to me that the Government should deliver an arts strategy. The whole point of the arts and creativity is that people should do whatever the hell they want, unbound by the dictates of politicians in Wellington. Peter Jackson, Kiri Te Kanawa, Eleanor ...
The ministers responsible for green-lighting major projects need to be open about potential conflicts of interest, says Transparency International. ...
Source: The Conversation (Au and NZ) – By Anastasia Powell, Professor, Family and Sexual Violence, RMIT University It has been a particularly distressing start to the year. There is little that can ease the current grief of individuals, families and communities who have needlessly lost a loved one to men’s ...
Source: The Conversation (Au and NZ) – By Gregory Moore, Senior Research Associate, School of Ecosystem and Forest Sciences, The University of Melbourne Lichen, the first described example of symbiosis.AdeJ Artventure/Shutterstock Once known only to those studying biology, the word symbiosis is now widely used. Symbiosis is the intimate ...
Source: The Conversation (Au and NZ) – By Kim Hemsley, Head, Childhood Dementia Research Group, Flinders Health and Medical Research Institute, College of Medicine and Public Health, Flinders University Olena Ivanova/Shutterstock “Childhood” and “dementia” are two words we wish we didn’t have to use together. But sadly, around 1,400 ...
Source: The Conversation (Au and NZ) – By Peter Whiteford, Professor, Crawford School of Public Policy, Australian National University The government’s Economic Inclusion Advisory Committee has just published its second report. It was set up by Treasurer Jim Chalmers and Minister for Social Services Amanda Rishworth in 2022 to provide: ...
Source: The Conversation (Au and NZ) – By Adrian Beaumont, Election Analyst (Psephologist) at The Conversation; and Honorary Associate, School of Mathematics and Statistics, The University of Melbourne The Queensland state election will be held in October. A YouGov poll for The Courier Mail, conducted April 9–17 from a sample ...
Source: The Conversation (Au and NZ) – By Amin Naeni, PhD candidate at Alfred Deakin Institute for Citizenship and Globalisation, Deakin University There’s been much talk in recent months about what a possible second Donald Trump presidency in the United States could mean for Europe, Russia’s war in Ukraine, the ...
A brief round-up of submissions on the controversial proposed law. This is an excerpt from our weekly environmental newsletter Future Proof. Sign up here. Last week, submissions on the controversial Fast-track Approvals Bill closed just hours after the government released a list of stakeholder organisations who were sent letters advising how they could ...
A poem from Robin Peace’s new collection Detritus of Empire: feather / grass / rock. Cereal giving I see a woman’s hands, see her curious hands break a stalk as she walks through the tall prairie, the savannah, the steppe, wherever it was. See her idly bite the grass that ...
The only published and available best-selling indie book chart in New Zealand is the top 10 sales list recorded every week at Unity Books’ stores in High St, Auckland, and Willis St, Wellington.AUCKLAND1 Hemingway’s Goblet by Dermot Ross (Mary Egan Publishing, $38)A handsomely produced (debossed cover, lovely ...
The Commissioner's decision validates the longstanding efforts of the local community and ensures that Awataha Marae will be managed to serve the needs of the local community, particularly for hosting tangihanga. ...
Source: The Conversation (Au and NZ) – By Tristan Salles, Associate professor, University of Sydney Examples of Australian landscapes.Unsplash Seventy thousand years ago, the sea level was much lower than today. Australia, along with New Guinea and Tasmania, formed a connected landmass known as Sahul. Around this time – ...
Source: The Conversation (Au and NZ) – By Felicity Castagna, Lecturer, Creative Writing, Western Sydney University Day Day Market, ParramattaPhoto: Garry Trinh I live on the edge of Parramatta, Australia’s fastest-growing city, on the kind of old-fashioned suburban street that has 1950s fibros constructed in the post-war housing boom, ...
Source: The Conversation (Au and NZ) – By Michael Ryan, Teaching Fellow in Economics, University of Waikato GettyImagesfatido/Getty Images There is an ongoing global debate over whether the high inflation seen in the aftermath of the COVID-19 pandemic can be lowered without a recession. New Zealand is not ...
The ‘Wicked Game’ heartthrob is in his late 60s now. That didn’t stop him putting on a lively, goofy and very sparkly show. Apart from ‘Wicked Game’, which graces a sultry playlist of mine simply called 💋, my last sustained Chris Isaak listening session took place when I was about ...
Analysis - Two ministers were stripped of portfolios in a warning to Cabinet, drama broke out at the Waitangi Tribunal, and the gang patch ban bill ran into opposition. ...
Tara Ward makes an impassioned plea for some vital pop culture merch. In April 1999, I became obsessed with a new reality television show called Popstars. Every Tuesday night, five strangers transformed into music royalty before my very eyes as Joe, Keri, Carly, Erika and Megan were chosen to form ...
PNG Post-Courier In the early hours of ANZAC Day, aerial photographs captured an impressive gathering of Australians and Papua New Guineans at Isurava in the Northern (Oro) Province. The solemn dawn service yesterday was held at a site steeped in history, where some of the fiercest battles of World War ...
The PSA is shocked that Oranga Tamariki has used the cost cutting drive to downgrade its commitment to Te Ao Māori and remove many specialist Māori roles. ...
Source: The Conversation (Au and NZ) – By Ian Kemish, Adjunct Professor, School of Historical and Philosophical Inquiry, The University of Queensland There can be no more powerful symbol of the relationship between Australia and Papua New Guinea than the prime ministers of these neighbouring countries walking together on the ...
Source: The Conversation (Au and NZ) – By Sharon Robinson, Distinguished Professor and Deputy Director of ARC Securing Antarctica’s Environmental Future (SAEF), University of Wollongong, University of Wollongong Andrew Netherwood Over the last 25 years, the ozone hole which forming over Antarctica each spring has started to shrink. ...
Source: The Conversation (Au and NZ) – By Viktoria Kahui, Senior Lecturer in Environmental Economics, University of Otago Getty Images/Amy Toensing Biodiversity is declining at rates unprecedented in human history. This suggests the ways we currently use to manage our natural environment are failing. One emerging concept focuses on ...
Source: The Conversation (Au and NZ) – By Timothy Colin Bednall, Associate Professor in Management, Swinburne University of Technology marvent/Shutterstock Finding the best person to fill a position can be tough, from drafting a job ad to producing a shortlist of top interview candidates. Employers typically consider information from ...
Wondering where to host your next BYO? Whether its a small gathering or a massive party, we’ve got some recommendations. I was first introduced to the concept of BYOs at Dunedin’s India Gardens, a legendary but sadly defunct establishment, which purveyed enormous quantities of mango chicken to Aotearoa’s drunkest future ...
Source: The Conversation (Au and NZ) – By Julien Cooper, Honorary Lecturer, Department of History and Archaeology, Macquarie University Julien Cooper The hyper-arid desert of Eastern Sudan, the Atbai Desert, seems like an unlikely place to find evidence of ancient cattle herders. But in this dry environment, my new ...
The sector says it’s hopeful her replacement Paul Goldsmith will be able to throw it a lifeline, after six months with a minister deemed missing in action, writes Catherine McGregor in this excerpt from The Bulletin, The Spinoff’s morning news round-up. To receive The Bulletin in full each weekday, sign ...
The government can't just rely on axing public sector jobs and has to do more to cut spending, says the chief economist at a free market think tank. ...
Rock The Vote NZ, known for its advocacy for minor party unity and its role within the Freedoms NZ Coalition during the 2023 General Election, celebrates this merger as a strategic enhancement of its operational strength and outreach. ...
Nearly everyone has experienced the frustration of something you use breaking and being difficult or expensive to fix. Proposed legislation could change that. It’s been raining on and off all Sunday afternoon but people are lining up outside a building in a corner of Gribblehirst Park in Sandringham, Auckland. In ...
What does a forever relationship look like when you don’t believe in marriage? And how do you celebrate it? This essay is part of our Sunday Essay series, made possible thanks to the support of Creative New Zealand.I’m going to do it, right now. I’m going to say ...
It’s not that long ago Eliza McCartney was seriously wondering if the Paris Olympics would be her pole vaulting swansong. After years of being hounded by injury after injury, the Rio Olympics bronze medallist was still confident she would compete at her second Olympics in Paris in July, unless something ...
FICTION 1 Take Two by Danielle Hawkins (Allen & Unwin, $36.99) There’s commercial fiction, like this book, and then there’s quality fiction, quality writers, quality literature; the forthcoming Auckland Writers Festival is full of quality, and ReadingRoom has two tickets to give away to the following events: Paul Lynch (Dublin ...
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You can’t have missed the Gallipoli story as the movies, documentaries, essays and books capture what it was like for New Zealand troops in their eight-month campaign on the Peninsula. But this Anzac Day the Auckland War Memorial Museum has published a book that sheds light on a little-known aspect of the ...
The Prime Minister has committed to resuming direct flights to Thailand. But it’s not a promise he will be able to deliver on anytime soon. The post Prime Minister jumps the gun in Thailand appeared first on Newsroom. ...
Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra In the free-for-all between the Australian government and Big Tech boss Elon Musk this week, the government had to be on a winner. Most people would have little sympathy with Musk’s vociferous opposition to ...
Asia Pacific Report Chief Mandla Mandela, a member of the National Assembly of South Africa and Nelson Mandela’s grandson, has joined the Freedom Flotilla in istanbul as the ships prepare to sail for Gaza, reports Kia Ora Gaza. Mandela is also the ambassador for the Global Campaign to Return to ...
Pacific Media Watch Journalists who report on environmental issues are encountering growing difficulties in many parts of the world, reports Reporters Without Borders. According to the tally kept by RSF, 200 journalists have been subjected to threats and physical violence, including murder, in the past 10 years because they were ...
Analysis by Dr Bryce Edwards, Democracy Project (https://democracyproject.nz)Political scientist, Dr Bryce Edwards. Prime Minister Christopher Luxon has surprised everyone with his ruthlessness in sacking two of his ministers from their crucial portfolios. Removing ministers for poor performance after only five months in the job just doesn’t normally happen in ...
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Why building more houses will not fix prices – economist Brian Easton. https://www.pundit.co.nz/content/the-sources-of-house-price-inflation
I'm inclined to agree. Shortages are simply an intractable backdrop against which interest, and monetary policy generally, serve to exacerbate the problems that shortages cause.
Why must house prices be fixed?
because people need to be able to afford to live in them.
If you had answered:
Because people need to be able to afford to own them, I would have agreed.
House price fixing concerns ownership. It certainly has secondary effects, but mostly, the price of the house is the cost of owning it.
Easton is making some massive correlations, but no useful causes.
but mostly, the price of the house is the cost of owning it.
As I've said a few times before; if you think the rent is high – try owning it.
owning and renting are two different things. And renting to use for a while should never cost more then owning does, and currently renters pay the mortgage, the interest, and what ever else the owner wants out of the property.
btw, my mortgage that i pay currently is 200$ per week.
you can't even rent a dog kennel for that amount anywhere in NZ.
I reckon, my mortgage is $210 a week, if I rented the same house it would be double, and with no return. Free insulation, cheap rates, I could also halve that if I got a flatmate (which I may do once my kids leave). I don't take this for granted, I realise I'm one of the lucky few.
+1
ditto here. And the bank don't come to inspect every three month.
Have to strongly disagree with you there RL, we are in our first own house (nearly freehold) after renting for 30+years the last 15 of those with three children, owning your own home has for us probably been pretty similar, maybe a bit more expensive but not a lot, and especially when you take into account all the benefits…the main one is not having to deal with Ma&Pa landlords they are generally like spawns from hell, they have made renting a fucking nightmare, it is awful, and no country that has the resources NZ has should let it’s citizens endure that type of life…welcome to free market liberalism I guess, markets operating just as they should…Thanks David Lange.
Gone are the old days when you would rent a house and live in it for years and hardly be bothered as long as you paid your rent and maintained the property…our last ten years of renting were a disaster (with one exception) as far as landlords went…even if owning a home was/is more expensive, how can you put a price on the endless stress and worry and more importantly the hundred of subtle ways it damages and undermines children having little to no long term home security.
Nope.
Owning a home provides security that no amount of rental law cannot.
The trouble is that house prices do not reflect the cost of owning a home. They reflect the cost of the expected medium-term capital gains (post bright-line). It wasn't a problem when they reflected the expected gains upon retirement and downsizing, but now who honestly expects to be in that house for thirty years? Or do they expect to flip it in ten years or so?
Agree with the security bit. I've seen the pro's and cons of home ownership debated at length in New Zealand literature. They're pretty even.
I'd like to see some proper policy work done on the effects of Andrew Little's current extension of the Bright Line test, and the likeley extension to 10 coming up. Doesn't seem to have made much difference to house prices at all – so if it's not working as intended it should be removed.
Perhaps that is a point of the Easton paper – no one issue will solve the housing crisis. After all the current presumption of intent is flawed, but reversing it would mean that gains up to the time legislation takes effect are likely to remain tax free, so most people would not pay much tax for many years; but owners of rental properties may hold for longer to defer the payment. Requiring a bigger amount of real (not borrowed) equity may be possible , but that would be easier if we increased wages so that the government does not need social welfare or Working for Families to enable new home buyers to afford to live with a family.
If he had started with the 1% homeless crisis – which is about as bad as it gets in the OECD, I would have agreed with him. He didn't.
Pretty even for people who can afford to choose their housing tenure type.
For people at the mercy of a speculative landlord, not so much.
I have a good landlord. Doesn't put the rent up every week etc. . But a batten holder wore out 8 months ago – and it only got fixed last month – no bedroom light all winter. Rentiers are oppressors, even the the good ones.
And of course the inability of contemporary NZers to afford their own homes is the final disproof of neoliberalism. It was supposed to make us more prosperous if you remember – on the contrary, it has impoverished us. Voters, looking at neoliberals think: "Were you really that stupid that you swallowed the hype in spite of our warnings? Or were you just corrupt?"
Because their speculative growth is entrenching even more deeply NZ's trans-generational class system.
Even if a full-time worker can rustle up a 10-20% deposit, I strongly suspect most NZers probably wouldn't earn enough to service the mortgage on a median-priced house.
For me, it was break-even with no margin for error five years ago. Now? It's a joke. And I have a good job, no dependants, and a retirement fund, but houses are more than twice the price. Almost literally – I looked up that house recently. It's gone from $230k to $450k. Has any actual worker's salary doubled in five years?
Absolutely the personal stories are valid.
I'm kinda waiting for evidence of the K-shaped economy to hit.
And it's indisputable that salaries haven't kept up with house prices.
But if Easton had tracked house prices, salaries, and national home ownership, he would have seen no collapse in average ownership at all. Even as prices skyrocketed.
In fact we're still better than nearly all other developed countries for home ownership.
Easton calls it speculation. 65% of us call it risk management.
Might pay to check the stats before making wild claims
https://www.stats.govt.nz/reports/housing-in-aotearoa-2020#:~:text=At%20the%20time%20of%20the%202018%20Census%2C%20New%20Zealand's%20homeownership,to%2064.5%20percent%20of%20households.
and falling.
Easton’s analysis is sound and he is not alone with the conclusions….it has been well canvassed and the only major dispute is around to what degree other factors impact.
Oh don't worry I checked. Which is why I stated 65% home ownership.
And I also checked on the international benchmarks for developed countries.
It's barely moved downward since the last time they measured. You can check.
You just have to read beyond the hysteria.
stating 65% mean sweet FA unless you also state from where it came and what the trend is…as you well know.
and I too have checked…"and falling"
"Home Ownership Rate in New Zealand is expected to reach 64.29 percent by the end of 2020, according to Trading Economics global macro models and analysts expectations."
If youre not already you should be a politician
The home owner percentage has barely moved since 2013.
In the site you cite, go into the full statistical report, fig 15 p 28.
https://www.stats.govt.nz/reports/housing-in-aotearoa-2020
Maybe 2021 changes all of that, looking forward to the evidence.
You will get your evidence (sadly)…
"In 1991, 61% of people aged 25-29 owned their own home, but by 2018 this had dropped to 44%.
Ownership rates have also fallen for people in their 30s, dropping from 79% in 1991 to 59% in 2018."
https://www.interest.co.nz/property/108312/home-ownership-levels-are-continuing-decline-especially-younger-people
figures 17 -20 from the report if I recall correctly
And the explanation is glaringly obvious, the inflated prices relative to income
And as outlined below there is more to it than just economics – it's the relentlessly increasing age of first marriage that also means that 20-29 age group just aren't interested in buying homes.
Another factor is the rise in divorce rates – usually one partner will finish up renting for a period afterward.
This doesn't discount the obvious affordability issue in play – but it does suggest there are often more factors involved than the headlines make out.
Of course, unmarried people dont buy houses….how could i miss that.
And the 20 -29 year olds arnt interested in buying homes….because they increasingly cant afford them….the same applies to those in their 30s…and the ones that eventually can take considerably longer to raise the increasing deposits.
Those decreased ownership rates in the cohorts coming through are going to have a major impact on the total ownership rates as the proportionately higher ownership rate cohort approaching 70 move into care/die
I would argue one can own multiple houses but only one is ever your home but that's an aside.
To do a real comparison a similar breakdown as above is needed for the historical data.
https://www.newstalkzb.co.nz/news/business/mum-and-dad-landlords-own-more-than-a-third-of-property/
And that's households (where homeowners are a member of the household). Only half of individuals own the home they live in, directly or indirectly (same link, p34).
Additionally, although $value of lending to first home buyers peaked last year at 20%, the proportion of actual borrowers at the time was 12%.
The longer this situation goes on, the more nailed in the inequity will be.
"no collapse in average ownership at all"
Are you serious?
65% is barely moved from the last time they measured.
You sound like a CC denialist – "oooh look, this part of the graph is flat!"
A 13% drop in fact.
Go into the full statistical report, fig 15 p 28.
https://www.stats.govt.nz/reports/housing-in-aotearoa-2020
Maybe 2021 changes all of that, looking forward to the evidence.
Maybe 2021 will be the start of an ice age.
Heck of a change within a generation, though
If by "generation" you mean the peak in the early 1990s, I'd agree.
If by "generation" you mean back to the 1960s when everything about New Zealand was supposed to be our egalitarian apogee, no not really it's the same.
You not only can't read a graph it seems you can't even read:
"Homeownership at lowest rate since the 1950s" – the heading of the graph you link to.
I thought "generation" generally referred to thirty years or so?
But then if 68.9% is "the same" as 64.5%, I suspect we need to find a specific dictionary to agree upon for a common vernacular.
so not just 1950s but early 1950s.
Yup – the demographics don't lie. Before Rogergnomics the median age at marriage was around 23. After it was 33. Poverty. The social science folk can give the lie to every pretense of good governance.
Not everything is primarily caused by rogernomics. Reducing the social expectation for marriage wasn't just economic.
Keep telling yourself that – the old prof that ranted it at me would not be persuaded. He had plenty more too.
Data doesn't seem to match his claim.
It definitely moved a couple of years in the 1980s, but nowhere near ten years and the median age is still only around 31.
The data here suggests that the more developed a nation is, the faster the rate at which the age of 'first marriage' has been increasing.
The best explanation does not appear to be 'poverty'.
That would be of course because the data aren't set up to capture it.
Measure GDP alone and you could imagine Rogergnomics as something other than a brutal failure. But you would be letting data trickle through your fingers – politically convenient no doubt.
The first world nations have been lying to themselves for a good while now – with falling "labour force participation" instead of unemployment and so on. The lies are getting pretty thick. If everything were apples home ownership wouldn't have had to fall, nor would child (the only politically acceptable poverty) be so high.
All those suicides blamed on mental health too – same trick the Soviets resorted to. Our governors have no standards at all.
All those different countries – and none of them 'properly' capturing age of first marriage to your satisfaction.
Amazing.
Hardly – I'm not trying to extend my assertion around the world – it was you that had to reach beyond NZ to grasp at the straw that because other countries experience lesser forms of the same graphic failure, the brutal sham that was Rogergnomics was somehow excusable.
We all understand the appeal to the vanity of policy makers of a ‘great leap forward’, and I use Mao’s term deliberately, because Rogergnomics was every bit as hubris-laden, destructive, misguided, and undemocratic.
Typical debating fail – jumping to unjustified conclusions. Nowhere have I attempted to excuse neo-liberalism. Indeed if you'd been paying attention I have explicitly written a post on exactly why I regard it as 'out of bounds'.
So nowhere have I attempted to excuse Rogernomics – that’s a just a figment of your imagination. But to attribute everything bad that ever happened in this country to this singular cause is another kind of fail.
The inability to confront and address mistakes is typical of dysfunctional institutions like corporations or corrupted governments.
It isn't the price of the house that is relevant to the person buying it. It is the cost of servicing the mortgage. Here are a few graphs on housing costs. Between 2008 and 2019 the average household income in Auckland went up by about 50%. Thar was from $61.4k to $95.2k. The average weekly payment for people who had a mortgage only went up by about 20%. That was from $384/week to $460/week
https://figure.nz/chart/0Z1fITz5qe80b2tD-szOL5Pza2PB8N51f
When you look at the cost of buying a home the most important factor is going to be the mortgage interest rate. First mortgage rates in 2008 were about 8%. They are now, if the ASB quote in front of me is typical 2.29% for a 1 year fixed rate.
https://teara.govt.nz/files/g-23100-data_0.txt
https://www.goodreturns.co.nz/mortgage-rates.html
The second most important factor is going to be the deposit. If house prices go up by 17%, as they typically did last year the deposit will do the same and that is really going to hurt the first home buyer.
A note. This is not an area on Economics in which I have much knowledge or experience so all the numbers I have reference may be irrelevant. At a first glance though it wouldn't appear that people are much affected by the price rises while interest rates are dropping to the point that in real terms the money is free to borrow.
The commentary in the Stats NZ work on this supports this cost-of-mortgage issue. But it fails the obvious corollary: as prices go up, so too does the potential equity for deposits from Bank Of Mum And Dad (especially when they downsize, or die).
As a sort of comparison.
Bought house in 1980 with 30% deposit Interest was abt 30% of salary then
Now a 60% loan would cost about 25% of the same level of salary.
Having said that the amount of deposit today would be about 300k
Even without interest, the average borrowing for a first home loan is almost half a mil.
That ain't chump change to pay back weekly, by itself.
People buying their first homes need to be doing damned well.
Unless you can figure out some way of paying the same price while not borrowing so much, the two figures are pretty good substitutes for each other when it comes to looking at why people can't afford to own their own hovel.
I am not disputing that it isn't easy. Mind you I can remember when my mortgage rate was 13%. That was back in the 70's and I knew people who were paying more.
However I had a quick look at payments using the BNZ calculator.
On an $800k house with a 20% deposit and a 30 year term at 2.29% you pay $1,132,fortnight. On a property at half the price, and half the deposit for the same 30 years loan you would pay exactly the same amount if you were paying 8.5% which would have been quite likely back in 2008. Half the amount borrowed but the same $1,132 at the much higher interest rate.
On the monthly income for a household at the average number of $$95.2k/year you would be paying 31% of your income on your mortgage.
coolcool.
Where did the first home buyer get the extra $80k for the 20% deposit in 2020? Their income only went up by less than 50%. And their rent payments are through the roof, as well, so their savings might struggle to hit a wage inflation equivalent.
You did notice I said, in my first comment.
"The second most important factor is going to be the deposit. If house prices go up by 17%, as they typically did last year the deposit will do the same and that is really going to hurt the first home buyer."
I don't know. I haven't been in the market for a mortgage for 30 years. We did save our deposit for our first house in about 18 months though by living on about half of one of our two incomes. The total furniture we had in a one bedroom flat cost us about $100 dollars. I will admit we had one 10 year old car though. Entertainment was limited to barbecues with friends or going to the beach.
These days families are going to have to start thinking intergenerationally – as the Indians and Chinese are accustomed to doing.
Folks know which generation fucked it up.
Well the Chinese especially tend to regard their elders with considerable respect – and not so much of the 'ok boomer'.
The point is that if you want to be prosperous it takes more than just a good job – you need to plan ahead and use each generation's capacities and abilities for the benefit of the entire family.
And of course rising divorce rates over the period in question also have their impact – nothing destroys family wealth over time quite like it.
Only in a society with entrenched inequity and social mobility that does not reflect individual merit.
It's not a binary choice. Yes merit and mobility are valued highly in the West – but a well ordered and stable family over multiple generations will always have an advantage.
Not in a meritocracy.
Why not? And how would you prevent family success from benefiting the whole family? Are parents to be prohibited from helping their children if they can?
Insisting on nothing but a pure meritocracy seems an absolutist view to me.
In a meritocracy, it doesn't matter if parents help their kids or not. That's the point.
But my objection to the current situation isn't that NZ isn't a perfect meritocracy. My objection is that we're becoming less of a meritocracy. You can cloak it in "respect for elders" and "family stability" all you want, it's the simple greed of a previous generation turning into a dynastic problem.
I've said it before and I'll say it again: his solutions to the problems he described were bunk, but Marx was a spot-on critic of capitalism and feudalism. They're just two sides of the same coin. The Duke's ancestor hit peasants over the head with clubs, the magnate's ancestor paid other people to hit workers over the head with clubs.
In a meritocracy, it doesn't matter if parents help their kids or not.
Tell that to the Chinese or Indians busy building lots of intergenerational wealth in this country – property, businesses, you name it.
The simple reality is that a stable family is one of the best predictors of good social outcomes across the board.
Correction: the one of the biggest predictors of future wealth is parental wealth, and it's getting worse.
BTW, not sure where you're getting your data on household wealth by ethnicity?
So today to save a $160k deposit in 18 months from one income, that would be an income of $100k a year.
Basically, the govt needs to either build shitloads of affordable homes or build shitloads of state houses and have say a HNZ 5% stock turnover for modernisation in addition to a general increase in stock levels, sold through a rent to own equity deal.
Because this is a formalisation of an intergenerational class system. Not the one we've been ignoring and pretending doesn't exist, an actual regression back towards feudalism. Not all the way back, but a definite step back.
"So today to save a $160k deposit in 18 months from one income".
A minor correction but it wasn't one income. It was one and a half incomes. We lived on one quarter of our after tax income and saved the rest.
That was quite common at the time. We were, like all our friends, trying very hard to get to own our own home. We were also willing to live a great deal further out from the CDB than many people seem to be willing to do today and lots of people did not have a car.
I found it quite hilarious a couple of years ago to read about a 30 something woman who was complaining that she couldn't afford a first house. Her idea of a first house was 4 bedrooms and 2 bathrooms in Roseneath, Mt Vic or Mt Cook. There was no way she was going out to the distant suburb of Hataitai. If you aren't a Wellingtonian look it up. It would be comparable to refusing to live way out in the wilds of Epsom I suppose.
So to do it today, that's still two people in the same household earning well above the median income.
You forgot to bring up coffee and avocado smash.
This article is in some ways quite good on looking separately at both sides of the housing market. Though I didn't really like Eastons alternative of demand backed by offshore financing, as this doesn't either fit the facts.
First the banking system doesn't lend out existing deposits but instead creates additional deposits when extending loans. Second the fact that a trade deficit was occuring simultaneously to an expansion in borrowing will mean an expansion in overseas ownership domestically, but a lot of the overseas trades are not in $NZ so in what sense is that supporting lending into a housing market almost exclusively trading in $NZ. This explanation is equally likely to misslead as the explanation it replaces.
The bank may create credit but they are still required to hold reserves and the size of those reserves determines how much credit they can create…..and a glut of international liquidity looking for a safe home and return knows which side their bread is buttered on.
Your talking about 'capital' not reserves there (especially in the context of overseas funding), and capital is still not a constraint on lending. It might place limits on the interest rates accessible in some cases.
But the simpler explanation is just that a lot of those recent house sellers at the time also took overseas trips.
Wrong …the amount of credit a bank can create is directly linked to their reserves and that capital can (and does) come from offshore…the interest rates are a consequence of the ability to service the level of debt (credit).
Still its, not a constraint on lending.
Of course it is…unless the bank wishes to breach its conditions of licence
The country didn't instigate a housing bubble based on money it borrowed overseas. That would be a very missleading claim, and I expect you would not claim it happened either. Yes, the implication is that the country can manufacture as much capital as it needs to facilitate lending for itself.
the glut of money sloshing around the world looks for a home and preferably a safe one with good access…..where better than backing the banks of open economies, ones with a political class wedded to the idea of free capital flows. The Banks use that increased reserve capacity to grow their loan books and thereby increase their profits, everybody wins,,,except for the poor mugs being milked for every available penny when they try and enter the housing market,
And the Gov is trapped because if they seriously try to do anything about housing affordability that capital in the banks reserves will find a new home …and probably not in NZ.
Capital outflow equals negative growth not to mention all the associated problems
I have no idea what this is going to achieve, but it's hard to fault the ambition. Pope Francis has just
https://www.prnewswire.com/news-releases/the-council-for-inclusive-capitalism-with-the-vatican-a-new-alliance-of-global-business-leaders-launches-today-301187931.html
launched a partnership between the Vatican and some of the world’s largest companies, nonprofits and government agencies to reform capitalism.
The Council for Inclusive Capitalism with the Vatican is led by Guardians for Inclusive Capitalism, a group of officials representing such entities as the Bank of America, BP, Dupont, the Ford Foundation, Mastercard, Merck, the Rockefeller Foundation, Salesforce, Visa and the State of California.
Under the Pope’s guidance, these “guardians” aim to “reform capitalism into a powerful force for the good of humanity” and create a “more inclusive, sustainable and trusted form of capitalism.”
https://www.inclusivecapitalism.com/
Their mission is "to harness the private sector to create a more inclusive, sustainable and trusted economic system."
Just occasionally I wish Bruce Jesson and Christopher Hitchings were still alive to comment.
It's too weird for me to even try to comment yet.
Should have just called it FaustianPact.com
That's quite remarkable. From your second link:
What a lot of people here have missed is that many boardrooms across the US and EU have been quietly working toward all kinds of social and economic reforms. But because it's 'fucking capitalists' it never gets onto our radar.
It's a theme I'd have picked up on more – but every time I type the word 'capitalist' a kind of red mist descends. eg McF predictably above.
It's also not unreasonable to look at the Catholic Church's own historical approach to wealth management and go what the actual fuck.
Well history is tilting in ways never encountered before.
Basically we've tried three major economic variants – capitalism, communism and fascism – and of the three only the first has shown the necessary evolutionary capacity to adapt to the new world we're heading into.
It's all about the demographics. Young adults are consumers of goods and services, mid-aged adults are investors in capital and services, and retired adults are consumers of capital. At least in very broad terms.
For the first time in all of our history our populations are now quite rapidly becoming dominated by late adult to retired aged populations. Fully half of all Boomers will retire in 2022. Suddenly growth is no longer possible or even desirable. And none of the economic systems we've ever attempted have ever been exposed to this scenario – but I'd put my bet on capitalism being the one most likely to evolve to meet the challenge.
Could you perhaps explain the differences between these 'economic variants'? Particularly the economic differences between capitalism and fascism.
Thanks in advance.
The other day I found this amazing website …
Was Henry Ford fascist or capitalist? Or is it not an "or"?
He had a pretty good idea of the solution.https://www.financialexpress.com/auto/car-news/forget-electric-cars-henry-fords-cannabis-car-was-made-from-hemp-10xstronger-than-steel-100-green/1384733/ . I think he offered another way, one that may not have had us in our present situation.
I was asking you RL as you are perhaps the only person I've ever heard claim fascism is an economic system.
So please back up your statement with some facts or you're the one who needs that site you just found.
I see China are trying to join the TPP as is the UK. Does this mean that a large state actor like China or the UK could sue our government if we don't toe their line with regard to commercial companies. Given that a lot of chinese commercial investment seems to have some sort of state back up how exposed does this leave us?
I'm pretty confused but is it time that the existing TPP members rolled back a lot of the not actual trading and tariffs parts of the agreement so that the grouping is less attractive to major players. It all seems to reduce our ability both domestically and internationally? Should a trade agreement affect domestic politics that much?
https://www.interest.co.nz/news/109042/big-japanese-quake-china-targets-nz-over-tpp-application-us-sentiment-waivers-canada
https://asia.nikkei.com/Editor-s-Picks/China-up-close/Analysis-A-new-Anglo-Japanese-alliance-threatens-China-s-TPP-plans
Dorklander here. Oh the evils of a lockdown. No warning and the bottle store closes. Have to sundown on a 15 year Chivas Regal rather than my ho hum teachers
NZ hellhole.
For the radio listeners among us.
This link is a big bad rabbit hole to follow, so don't say you weren't warned.
Essentially every little green dot is a radio station. Have fun.
http://radio.garden/
lol, fair warning!
Thanks Sabine – amazing.
Watercare does Watercare, again.
https://www.nzherald.co.nz/nz/contractors-accidentally-pour-2000-tonnes-of-cement-like-grout-into-auckland-water-main/SURUDLSTLBJU7BDNL4XWMEY52U/