web analytics

There is no housing problem!

Written By: - Date published: 10:25 am, May 11th, 2017 - 19 comments
Categories: housing, national, spin, useless, you couldn't make this shit up - Tags: , , , , , ,

Unbelievable:

Better for first-home buyers now – Government

Nick Smith says figures for first home buyers nationally show housing is more affordable than when National became government.

Nick Smith has lost the plot (along with the portfolio).

The Government says first homes are more affordable, despite a new measure showing houses are out of reach for the majority of first-time buyers.

Four-fifths of potential first home buyers could not comfortably afford a house in New Zealand, according to an MBIE report.

The long-delayed housing Housing Affordability Measure (HAM) was finally released on Wednesday after almost two years of delay.

The new Housing Affordability Measure (HAM) is described here (Henry Cooke on Stuff):

New HAM measure is powerful but won’t stop the spin

Throughout the entire housing crisis, while median prices in Auckland have close to doubled in the last seven years, the Government has lacked an actual measure on what they consider “unaffordable”. This situation let John Key point to a grab bag of Trade Me listings when it was politically useful, and hamstrung journalists and others looking to get a rigorous picture of the problem.

Today that changed – kind of. The Ministry of Business Innovation and Employment (MBIE) have finally released the Housing Affordability Measure (HAM), which Cabinet commissioned way back in 2012. It has a funny name and is very complicated but it does do one very important thing: it puts a specific number on unaffordability.

If you’re a single renter who has less than $690 of pre-tax income left each week after paying rent or a hypothetical mortgage payment in your area, you’re below the threshold, and your housing options are unaffordable.

The story that number tells is a bit more complicated than “everything’s screwed” but isn’t that far off. With that number in mind, as of mid-2015, four fifths of renters could not afford to buy even a cheap house near where they currently lived, and close to two thirds couldn’t comfortably afford to continue to rent. (MBIE estimates those renters make up about a third of the country.) As ever, things are the worst in Auckland, where 95 per cent of the renters in Manakau could not comfortably afford mortgage payments on a starter home in their area.

MBIE got this number by taking a look at the exact median amount left over for the entire country in mid-2013, and then adjusting for inflation and for household size.

So no, the picture is likely not quite as bleak as “four fifths of Kiwi renters will never be able to afford a home,” but it does show that there is a definitely a serious problem, and in Auckland that problem is getting even worse. …

Read the full piece for plenty more and pretty graphs.

In other news (Liam Dann in The Herald):

Young house hunters should just give up

Last week’s property statistics were horrible for anyone hoping to get on the property ladder in Auckland.

If you convert that 12.3 per cent rise into dollars (which, unfortunately, is what we have to pay for things with) the average value of a house in the Auckland region rose by $114,000 in the past 12 months.

I’m not sure how many flat whites that is, but if I was young and contemplating the Auckland housing market I’d waste my money on something a bit stronger.

Normal people should probably just give up. If you are on any kind of regular wage then scrimping and saving to buy a house is futile.

Based on the case studies we’ve seen in the media in the past few weeks some young people are so desperate to own a home they are gearing every aspect of their life towards it. They are effectively learning to become property investors in order to get into the market. This is a terrible way to resolve the housing crisis. The last thing New Zealand needs is more property investors.

To quote Dr Oliver Hartwich from economic think tank The New Zealand Initiative: “Booming property markets create a mirage of wealth, not wealth itself.” That’s not a lefty liberal, millennial view. That’s the view of most economic and financial market experts in this country.

The next Government, regardless of which party forms it, needs to confront housing inequality. Otherwise New Zealand will eventually have its own Brexit or Donald Trump-style backlash. …

Housing affordability plummets across New Zealand
Auckland housing affordability tumbles
Housing affordability ‘crisis point’
Auckland houses ‘severely unaffordable’
‘I see no way of ever being able to own my own home’
Loans for first homes jump 43% in 2 years
NZ ‘half a million houses’ short
Auckland needs to double number of new homes – data

And so on…

19 comments on “There is no housing problem! ”

  1. Rosemary McDonald 1

    No housing?

    No problem.

    Sorted.

  2. Keith 2

    Failing all else on housing, the National Party are now solely reliant upon lies. Nothing new there but they getting far more blatant stupid lies at that.

    Yes Nick, 10+ times the average wage to buy a home, the vast vast majority of first home buyers are now excluded from the market and the best this idiot and his lying party can come up with is ” housing is more affordable than when National became government”. How embarrassing and how fucking insulting is that!

    They are out of ideas, they know the housing bubble is propping up the economy and they want to cling to power any way they can.

    Time for a new government who, a, gives a shit and b, has a genuine plan to sort this mess out!

    • Draco T Bastard 2.1

      They are out of ideas

      They have ideas but their ideas always make things worse for the nation in general although it will make a few rich people richer.

      That’s now becoming excruciatingly obvious now and so they’re having to lie even more than usual.

      • michelle 2.1.1

        Even worse than our government lying more is they have the police lying for them so its like a disease its spreading

    • NZJester 2.2

      Technically he is not lying as for Wealthy foreigners as well as well healed National party supporters who have received large tax breaks, had the tax burden moved off them to the less well off, got bargain basement shares in SOEs returning nice dividends and lots of new ways to funnel their money through tax havens it has become more affordable for them to afford a house in New Zealand than when National first came to power.
      All those middle-class idiots who voted for National and those of us who would never vote for National are the only ones finding it impossible to buy a house.

    • Liberal Realist 2.3

      Failing all else on housing, the National Party are now solely reliant upon lies. Nothing new there but they getting far more blatant stupid lies at that.

      Yes Nick, 10+ times the average wage to buy a home, the vast vast majority of first home buyers are now excluded from the market and the best this idiot and his lying party can come up with is ” housing is more affordable than when National became government”. How embarrassing and how fucking insulting is that!

      Clearly Nick and his Nasty Party colleagues don’t give a fuck! It doesn’t matter how embarrassing the lie is. Insulting the ‘plebs’ is part of the Nasty Party DNA, they just can’t help themselves.

      Nick must believe his own bullshit! How does the quote go? “How can you tell when a politician is lying? His lips are moving!”

      A creative solution to lying politicians could be a requirement for them to be hooked up to a polygraph as a prerequisite to media interviews and public speeches. Not a bad test either! How difficult is it for a Nasty Party politician to tell the truth? Is it even possible?

      I’d be interested to know if any of Nick’s trusts hold interests in residential property?

      https://www.parliament.nz/media/3926/2017-summary-report-final.pdf

  3. saveNZ 3

    Just do what Bill does and gamble $293m at Sky City! No questions asked! Or asked but after private negotiations, 4 months community service. And lets face it, nobody would have cared if he had not got involved with Mega and FBI vendetta and just stuck with property and gambling and whatever else one does to be able to gamble $293 million at Sky City.

    http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11835412

    So the Paua poacher gets 4 years prison.
    A WINZ women who ‘had a relationship with another WINZ person’ gets 1 year of prison for fraud and her kids put into CYFS.
    8.5 years jail for businessman who wrote letters to Fonterra pretending he was going to put 1080 in milk powder.

    Gosh, no wonder we have so many new resident and non resident property investers these days! Crime does pay if you are rich enough!

  4. Ad 4

    They’ve just GOT to keep Smith on.

  5. Draco T Bastard 5

    The next Government, regardless of which party forms it, needs to confront housing inequality.

    Yes they do but is even Labour or the Green willing to build enough state houses fast enough to ensure everyone is housed with a lifetime lease for the house that they’re in?

    • tc 5.1

      Rhetorical question draco. Both those parties are way too middle of the road for that.

  6. Cinny 6

    Far out Nickoff, looking forward to our next encounter, you are a National Disgrace.

    I would really like to know how many Tory voters actually support him and his ideas, that don’t live in Smiths electorate excluding English, Brownlee and co.

  7. Richard@Downsouth 7

    I see to recall when 1st home buyers could afford a house, and could slowly afford the 5% deposit…

  8. Tanz 8

    Labour opened up the door though to overseas investors with the Free Trade Agreement. House prices were reasonable before then, when Kiwis sold mostly to Kiwis, homes to live in, not to make whopping fortunes out of, whilst locking out all new generations to come. Thanks Labour. National are no better, they blame the council for poor planning, rather than themselves, for doing nothing. A whole generation betrayed, locked out, not given the chance and right of owning a home, one of the best and most satisfying life achievements. Tragic really.

  9. simonm 9

    After all that dreadful publicity, Nick Smith is sure to be cheered by this bit of good news. Some buyers are finding it easier than ever before to purchase a home in New Zealand apparently…

    http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11853725

Recent Comments

Recent Posts

  • The Ahuriri Hapū Claims Settlement Bill passes Third Reading – Pānuitanga Tuatoru o te Pire ...
    Kua pahure te Pire Whakataunga Kerēme a ngā Hapū o Ahuriri i tōna pānuitanga tuatoru i te pāremata - he pae nunui i te hātepe whakataunga Tiriti o Waitangi hītori mō ngā Hapū o Ahuriri. “Ko te pae whakahirahira nei te tohu o te tīmatanga hou mō te whakahoanga i ...
    BeehiveBy beehive.govt.nz
    8 hours ago
  • Launch of Te Aorerekura – the national strategy for the elimination of family violence and sex...
    Tēnā tātou katoa Kei a koutou e Te Ātiawa, koutou e kaha tiaki nei, koutou e mau tonu nei ki te mana o tēnei o ngā whenua taurikura, tēnā koutou e te manawhenua, e Te Ātiawa. Kaha tautoko ana ahau i ngā kōrero kua kōrerotia, e ngā mihi kua mihia, ...
    BeehiveBy beehive.govt.nz
    10 hours ago
  • A guiding star sets a new path for the elimination of family violence and sexual violence
    Today the Prime Minister Jacinda Ardern and Minister for the Prevention of Family Violence Marama Davidson joined tangata whenua and sector representatives to launch Te Aorerekura, the country’s first National Strategy to Eliminate Family Violence and Sexual Violence. “Te Aorerekura sets a collective ambition to create peaceful homes where children, ...
    BeehiveBy beehive.govt.nz
    12 hours ago
  • NZ secures new Pfizer COVID-19 medicine
    New Zealand has secured supplies of another medicine to treat COVID-19, Health Minister Andrew Little announced today. “In October, New Zealand was one of the first countries in the world to make an advance purchase of a promising new antiviral drug, molnupiravir,” Andrew Little said. “Today I am pleased to ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Strong Pipeline for Construction Sector
    Strong pipeline ahead for the construction sector Infrastructure activity forecast to reach $11.2 billion in 2026 Construction sector now the fourth biggest employer with more than 280 000 people working in the industry Residential construction the largest contributor to national construction activity. Minister for Building and Construction Poto Williams says ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Regenerative agriculture research receives Government boost
    The Government continues to invest in farm sustainability, this time backing two new research projects to investigate the impacts of regenerative farming practices, Agriculture Minister Damien O’Connor announced today. Soil health and regenerative agriculture “We’re contributing $2.8 million to a $3.85 million five-year project with co-investment by Synlait Milk and ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • David McLean appointed as KiwiRail chair
    David McLean has been appointed as Chair of KiwiRail Holdings Ltd, the Minister for State Owned Enterprises Dr David Clark and Minister of Finance Grant Robertson announced today. “Minister Clark and I are confident that David’s extensive business knowledge and leadership experience, including his time as former Chief Executive and ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Ambassador to Turkey announced
    Foreign Affairs Minister Nanaia Mahuta today announced the appointment of Zoe Coulson-Sinclair as New Zealand’s next Ambassador to Turkey. “Aotearoa New Zealand and Turkey’s relationship is one of mutual respect and underpinned by our shared Gallipoli experience,” Nanaia Mahuta said. “Turkey is also a generous ANZAC Day host and has ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Announcement of new Consul-General in Guangzhou
    Foreign Affairs Minister Nanaia Mahuta today announced the appointment of Rachel Crump as New Zealand’s next Consul-General in Guangzhou, China. “China is one of Aotearoa New Zealand’s most significant relationships – it is our largest trading partner, and an influential regional and global actor,” Nanaia Mahuta said. “As the capital of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government marks International Day of Persons with Disabilities
    The Government joins the disabled community of Aotearoa New Zealand in marking and celebrating the International Day of Persons with Disabilities, Minister for Disabilty Issues Carmel Sepuloni said. The theme for this year’s International Day of Persons with Disabilities is “Leadership and participation of persons with disabilities toward an inclusive, ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Deputy Inspector-General of Intelligence and Security, and Advisory panel member appointed
    Prime Minister Jacinda Ardern has announced the appointments of Graeme Speden as the Deputy Inspector-General of Intelligence and Security, and Ben Bateman as a member of the Inspector-General’s Advisory Panel.  “These are significant roles that assist the Inspector-General with independent oversight of New Zealand’s intelligence agencies,” Jacinda Ardern said. “While ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Five million COVID-19 tests processed
    Associate Minister of Health, Dr Ayesha Verrall has congratulated testing teams right around New Zealand for reaching the five million tests milestone. Today, an additional 31,780 tests were processed, taking the total since the beginning of the pandemic in 2020 to 5,005,959. “This really is an incredible and sustained team ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Funding for extra ICU capacity
    Care for the sickest New Zealanders is getting a major boost from the Government, with plans to spend hundreds of millions of dollars on expanding intensive care-type services, Health Minister Andrew Little announced today. “Through good planning, we have avoided what the COVID-19 pandemic has done in some countries, where ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • “THE LEGAL AND CONSTITUTIONAL IMPLICATIONS OF NEW ZEALAND’S FIGHT AGAINST COVID.”
    Speech to the New Zealand Centre for Public Law Tēnā koutou katoa Thank you for providing this opportunity to speak with you today as Attorney General. I’m here to talk about the constitutional consequences of Covid -19. I love the law. The way it exists with the consent of the ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • The legal and constitutional implications of New Zealand’s fight against COVID
    Speech to the New Zealand Centre for Public Law Tēnā koutou katoa Thank you for providing this opportunity to speak with you today as Attorney General. I’m here to talk about the constitutional consequences of Covid -19. I love the law. The way it exists with the consent of the ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Pharmac Review interim report released
    Health Minister Andrew Little has released an interim report by an independent panel reviewing the national pharmaceuticals-buying agency Pharmac. Pharmac was established in 1993 and is responsible for purchasing publicly funded medicines for New Zealanders, including those prescribed by GPs or administered in hospitals. The review, chaired by former Consumer ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Appointment to Network for Learning board
    Former MP Clare Curran has been appointed to the board of Crown company Network for Learning (N4L), Education Minister Chris Hipkins says. Hon Clare Curran served as a Member of Parliament for Dunedin South from 2008-2010. During this time, she held a number of ministerial portfolios including Broadcasting, Communications and ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Putting home ownership within reach of Pacific Aotearoa
    Pacific community groups and organisations will get tools to help them achieve home ownership with the implementation of the Ministry for Pacific Peoples (MPP) Pacific Housing Initiative, said Pacific Peoples Minister Aupito William Sio. In July 2021, MPP launched the Pacific Community Housing Provider Registration Support programme and the Pacific ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Coastal shipping will help keep New Zealand’s supply chain buoyant
    Transport Minister Michael Wood today welcomed the release of the Coastal Shipping Investment Approach State-of-Play report as an important step towards a more sustainable coastal shipping sector, which will further diversify New Zealand’s supply chain. “This Government is committed to strengthening our domestic supply chain by making coastal shipping a ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Response to Human Rights Commission's reports into violence towards disable people
    Tēnā koutou, tēnā koutou, tēnā tātou katoa.   Thank you for that introduction Hemi and thank you for inviting me to respond on behalf of Government to the release of these two important reports (Whakamanahia Te Tiriti, Whakahaumarutia te Tangata -Honour the Treaty, Protect the Person and Whakamahia te Tūkino kore ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Law change strengthens petroleum decommissioning regulation
    Petroleum permit and licence holders operating in New Zealand will now have an explicit statutory requirement to carry out and fund the decommissioning of oil and gas fields after a new law was given Royal assent today, says Energy and Resources Minister Dr Megan Woods. Once in effect The Crown ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New Zealand Response to assist peace and stability in Solomon Islands
    The New Zealand government has announced that it will deploy Defence Force and Police personnel to Honiara to help restore peace and stability. “New Zealand is committed to its responsibilities and playing its part in upholding regional security,” Prime Minister Jacinda Ardern said.  “We are deeply concerned by the recent ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Continued growth in volume of new home consents
    In the year ended October 2021, 47,715 new homes were consented, up 26 per cent from the October 2020 year. In October 2021, 4,043 new dwellings were consented Canterbury’s new homes consented numbers rose 31% to higher than post-earthquake peak. New home consents continue to reach remarkable levels of growth, ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Saddle up for summer with cycle trail funding
    New investment will keep the best of New Zealand’s cycle trails in top condition as regions prepare to welcome back Kiwi visitors over summer and international tourists from next year. “Cycle tourism is one of the most popular ways to see the country ‘off the beaten track’ but the trails ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New Zealand provides additional funding to COVAX for vaccine delivery
    Foreign Affairs Minister Nanaia Mahuta today announced additional funding will be provided to COVAX to support vaccine delivery in developing countries. “New Zealand remains cognisant of the dangers of COVID-19, especially as new variants continue to emerge. No one is safe from this virus until we all are and this ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • COVID-19 Community fund providing support for 160 organisations focused on women and girls
    Minister for Women Jan Tinetti today announced financial support will be allocated to the 160 successful applicants for the COVID-19 Community Fund, to support organisations helping women/wāhine and girls/kōtiro in Aotearoa New Zealand affected by the pandemic. “COVID-19 has had a disproportionate effect on women around the world including in ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Government delivers reactivation package as Aucklanders reconnect for summer
    A new support package will help revive economic, social and cultural activities in our largest city over summer, and ensure those in hardship also get relief. The Social Development and Employment Minister Carmel Sepuloni and the Economic and Regional Development Minister Stuart Nash have announced a Reactivating Tāmaki Makaurau Auckland ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Mobile services and broadband come to Chatham Islands for first time
    World class mobile and broadband services have been switched on for the 663 residents of the Chatham Islands, Minister for the Digital Economy and Communications, David Clark and Minister for Economic and Regional Development, Stuart Nash announced today. “This eagerly awaited network will provide fast broadband and mobile services to ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Crown accounts reflect strong economy amid pandemic
    The Government’s financial accounts continue to reflect an economy that has performed better than expected, despite the latest Delta COVID-19 outbreak. The Crown accounts for the four months to the end of October factors in the improved starting position for the new financial year. Core Crown tax revenue was $2.5 ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Applications open for new 2021 Resident Visa
    The first round of applications for New Zealand’s new 2021 Resident visa open today (6am). “This one-off pathway provides certainty for a great many migrant families who have faced disruption because of COVID-19 and it will help retain the skills New Zealand businesses need to support the economic recovery,” Minister ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • More Vietnam Veterans to receive compensation for Agent Orange Exposure
    Minister for Veterans, the Hon Meka Whaitiri announced today that two new conditions associated with Agent Orange exposure have been added to the Prescribed Conditions List. Under the 2006 Memorandum of Understanding signed between the Crown and representatives of Vietnam veterans and the Royal New Zealand RSA. Vietnam veterans in ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government commits to international effort to ban and regulate killer robots
    Minister of Disarmament and Arms Control Phil Twyford announced today that New Zealand will push for new international law to ban and regulate autonomous weapons systems (AWS), which once activated can select and engage targets without further human intervention. “While the evidence suggests fully autonomous weapons systems are not yet ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New freedom camping rules – right vehicle, right place
    Tougher freedom camping laws will be introduced to prevent abuse which has placed an unfair burden on small communities and damaged our reputation as a high quality visitor destination. Tourism Minister Stuart Nash has confirmed that new legislation will be introduced to Parliament following an extensive round of public consultation ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government invests to support a classic Kiwi summer
    Vaccinated New Zealanders can look forward to Kiwi summer events with confidence, while artists and crew will have more certainty, following the launch of details of the Arts and Culture Event Support Scheme, Minister for Arts, Culture and Heritage Carmel Sepuloni announced today. “The Government recognises that the arts and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Grace period for expired driver licences cruises into 2022
    Due to the ongoing Delta outbreak and extended lockdowns, all New Zealand driver licences and licence endorsements that expired on or after 21 July 2021 will now be valid until 31 May 2022, Transport Minister Michael Wood announced today. “This further extension to the validity of driver licenses recognises that ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Delivered: 1,000 extra transitional homes
    A further 1,000 transitional homes delivered  New housing development starts in Flaxmere, Hastings  The Government has delivered the next 1,000 transitional housing places it promised, as part of its work to reduce homelessness. Housing Minister Dr Megan Woods is marking the milestone in Hastings at a new development that includes ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Traffic light levels announced
    The levels at which different parts of New Zealand will move forward into the COVID-19 Protection Framework this Friday have been announced. Northland, Auckland, Taupō and Rotorua Lakes Districts, Kawerau, Whakatane, Ōpōtiki Districts, Gisborne District, Wairoa District, Rangitikei, Whanganui and Ruapehu Districts will move in at Red The rest of ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Financial support to move to traffic light system
    A new transition payment will be made available particularly for affected businesses in Auckland, Waikato and Northland to acknowledge the restrictions they have faced under the higher Alert Levels. Transition payment of up to $24,000 as businesses move into traffic light system Leave Support Scheme and Short Term Absence Payment ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Ambassador to Russia announced
    Foreign Affairs Minister Nanaia Mahuta today announced the appointment of Sarah Walsh as New Zealand’s next Ambassador to Russia. “Aotearoa New Zealand and Russia have a long-standing relationship, engaging on a range of regional and global interests including disarmament and Antarctica issues. We also work together as members of the East ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Permanent Representative to the UN announced
    Foreign Affairs Minister Nanaia Mahuta today announced the appointment of Carolyn Schwalger as Permanent Representative to the New Zealand Permanent Mission to the United Nations in New York. “Aotearoa New Zealand is a founding member of the UN and we have worked hard to ensure our stance on human rights, ...
    BeehiveBy beehive.govt.nz
    1 week ago