Two posts from Rob at Polity yesterday on National and Housing:
First, here’s John Key talking in a speech about a housing crisis in early 2008:
Well, I’ve got a challenge for the Prime Minister. Before she asks for another three years, why doesn’t she answer the questions Kiwis are really asking, like… Why can’t our hardworking kids afford to buy their own house?
Fast forward to today, and the REINZ house price data (based on a Reserve Bank calculation method), as published by Bernard Hickey.
Under Labour, Auckland house prices rose around 9.6% a year.
Under National, they’ve grown at 12% a year.
So, in John Key’s world, sustained 9.6% price rises equal a housing affordability crisis, but if you take those increases and all another 12% a year on top for another sustained period, the crisis goes away. Ridiculous.
National really is losing the plot on this issue. And hardworking families, especially in Auckland, are suffering as a result.
Capital gains taxes don’t work.
That’s why we’re not introducing one.
In fact, New Zealand already has a capital gains tax.
Which we’ve decided to strengthen.
It won’t affect house prices much.
Because Auckland doesn’t have a housing crisis.
Although supply is really the only answer to it.
That’s why building houses is crazy.