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?

      Click to access 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

  • Trans-Tasman cooperation in a COVID-19 world
    New Zealand and Australia reaffirmed today the need for the closest possible collaboration as they tackle a global environment shaped by COVID-19, Foreign Affairs Minister Winston Peters said. “In these challenging times, our close collaboration with Australia is more vital than ever,” said Mr Peters. Mr Peters and his Australian ...
    BeehiveBy beehive.govt.nz
    24 mins ago
  • Government confirms CovidCard trial to go ahead
    The Government has confirmed a community-wide trial of CovidCard technology as it explores options for COVID-19 contact tracing. “Effective contact tracing is a vital part of the COVID-19 response,” Minister of Health Chris Hipkins said. “While manual processes remain the critical component for contact tracing, we know digital solutions can ...
    BeehiveBy beehive.govt.nz
    52 mins ago
  • DOC takes action to adapt to climate change
    A new Department of Conservation (DOC) action plan tackles the impacts of climate change on New Zealand’s biodiversity and DOC managed infrastructure including tracks, huts and cultural heritage. Minister of Conservation Eugenie Sage says extreme weather events around the country have really brought home our vulnerability to changing weather patterns. ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • Reduced international Antarctic season commences
    A heavily scaled back international Antarctic season will commence this week, Foreign Affairs Minister Winston Peters and Research, Science and Innovation Minister Megan Woods have confirmed. “Antarctica is the only continent that is COVID-19 free,” Mr Peters said. “Throughout the global pandemic, essential operations and long-term science have continued at ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • New high performance sports hub for Upper Hutt
    The Government is providing up to $30 million to help fund the NZ Campus of Innovation and Sport in Upper Hutt - an investment that will create 244 jobs. “The sports hub is designed to be a world-leading shared service for a range of sports, offering the level of facilities ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • Govt keeps projects on road to completion
    Transport Minister Phil Twyford announced today transport projects currently in construction will continue at pace due to extra Government support for transport projects to mitigate the impact of COVID-19. To keep the $16.9 billion 2018-21 National Land Transport Programme going the Government has allocated funding from the COVID Response and ...
    BeehiveBy beehive.govt.nz
    3 hours ago
  • First project utilising $50 million ‘shovel ready’ fund for rural broadband announced
    $50 million for further rural broadband digital connectivity has been allocated from the $3 billion infrastructure fund in the COVID Response and Recovery Fund has been announced by Shane Jones, Minister for Infrastructure and Kris Faafoi, Minister for Broadcasting, Communications and Digital Media. The investment will go to boosting broadband ...
    BeehiveBy beehive.govt.nz
    4 hours ago
  • Ultra-fast Broadband programme hits major milestone with more than one million connections
    The Minister for Broadcasting, Communications and Digital Media has congratulated the Ultra-fast Broadband (UFB) programme on its major milestone of connecting more than 1 million New Zealand households and businesses to UFB. “This milestone has been 10 years in the making and demonstrates the popularity of the UFB network. “Uptake ...
    BeehiveBy beehive.govt.nz
    6 hours ago
  • Vaping legislation passes
    Landmark legislation passed today puts New Zealand on track to saving thousands of lives and having a smokefree generation sooner rather than later, Associate Health Minister, Jenny Salesa says. The Smokefree Environments and Regulated Products (Vaping) Amendment Bill regulates vaping products and heated tobacco devices. “There has long been concern ...
    BeehiveBy beehive.govt.nz
    14 hours ago
  • Government repeals discriminatory law
    A discriminatory law that has been a symbol of frustration for many people needing and providing care and support, has been scrapped by the Government. “Part 4A of the New Zealand Public Health and Disability Amendment Bill (No 2) was introduced under urgency in 2013 by a National Government,” Associate ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • More competitive fuel market on the way
    Kiwi motorists are set to reap the benefits of a more competitive fuel market following the passing of the Fuel Industry Bill tonight, Energy and Resources Minister Megan Woods says.  “This Act is where the rubber meets the road in terms of our response to the recommendations made in the ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Government delivers on rental reforms promise
    The Government has delivered on its promise to New Zealanders to modernise tenancy laws with the passing of the Residential Tenancies Amendment (RTA) Bill 2020 today, says Associate Minister of Housing (Public Housing), Kris Faafoi. “The Residential Tenancies Act 1986 was out-dated and the reforms in the RTA modernise our ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • New rules in place to restore healthy rivers
    New rules to protect and restore New Zealand’s freshwater passed into law today. Environment Minister David Parker and Agriculture Minister Damien O’Connor welcomed the gazetting of the new national direction on freshwater management. “These regulations deliver on the Government’s commitment to stop further degradation, show material improvements within five years and ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Foreign Minister announces new Consul-General in Los Angeles
    Foreign Affairs Minister Winston Peters has announced the appointment of Jeremy Clarke-Watson as New Zealand’s new Consul-General in Los Angeles. “New Zealand and the United States share a close and dynamic partnership, based on a long history of shared values and democratic traditions,” Mr Peters said. “Mr Clarke-Watson is a ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Rental reforms provide greater support for victims of family violence
    Victims of family violence can end a tenancy with two days’ notice Landlords can terminate tenancies with 14 days’ notice if tenants assault them Timeframe brought forward for limiting rent increases to once every 12 months Extension of time Tenancy Tribunal can hear cases via phone/video conference Reform of New ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Apprenticeships support kicks off today
    Two employment schemes – one new and one expanded – going live today will help tens of thousands of people continue training on the job and support thousands more into work, the Government has announced. Apprenticeship Boost, a subsidy of up to $12,000 per annum for first year apprentices and ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Infrastructure to transform Omokoroa
    The Government is funding a significant infrastructure package at Omokoroa which will create 150 new jobs and help transform the Western Bay of Plenty peninsula, Urban Development Minister Phil Twyford announced today. Phil Twyford says the Government is investing $14 million towards the $28 million roading and water package. This ...
    BeehiveBy beehive.govt.nz
    24 hours ago
  • Bill passes for managed isolation charges
    The Bill allowing the Government to recover some costs for managed isolation and quarantine passed its third reading today, with charges coming into force as soon as regulations are finalised. Putting regulations into force is the next step. “The COVID-19 Public Health Response Amendment Bill and its supporting regulations will ...
    BeehiveBy beehive.govt.nz
    24 hours ago
  • Unemployment drop shows Govt plan to protect jobs and support businesses is working
    Today’s unemployment data shows the Government’s plan to protect jobs and cushion the blow for businesses and households against the economic impact of COVID-19 was the right decision, Finance Minister Grant Robertson says. Stats NZ said today that New Zealand’s unemployment rate in the June quarter – which includes the ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New role to champion reading for children
    A new role of New Zealand Reading Ambassador for children and young people is being established, Prime Minister and Minister for Arts, Culture and Heritage Jacinda Ardern and Minister for Internal Affairs and for Children, Tracey Martin announced today. The Reading Ambassador, announced at a Celebration of Reading event at ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Funding boost for Community Law Centres
    Community Law Centres will receive a funding boost to meet the increased need for free legal services due to COVID-19, Justice Minister Andrew Little said. The $3.5m funding is for the next three financial years and is additional to the almost $8 million for Community Law Centres announced in Budget ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New Zealand joins initiative to boost women’s role in global trade
    New Zealand has joined Canada and Chile in a new trade initiative aimed at increasing women’s participation in global trade. Trade and Export Growth Minister David Parker, together with Canada’s Minister for Small Business, Export Promotion and International Trade Mary Ng, Chile’s Minister of Foreign Affairs Andrés Allamand, and Chile’s Vice ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Government provides $2.2m to heritage buildings for quake strengthening
    Building owners around New Zealand have benefited from the latest round of Heritage EQUIP funding with grants totalling $2,230,166. “The Heritage EQUIP grants for seismic strengthening assist private building owners to get the professional advice they need to go ahead with their projects or support them to carry out the ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Better hospital care for Northland babies and their whānau
    •    New paediatric facilities, including a Special Baby Care Unit •    Up to 50 extra inpatient beds  •    New lab facilities  Northland babies and their whānau will soon have access to improved hospital care when they need it with Health Minister Chris Hipkins today confirming new paediatric facilities and more ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Green light for Wellington and Wairarapa in $220m nationwide cycleways package
    People walking and cycling between Featherston and Greytown, or along Wellington’s Eastern Bays will soon have a safe shared path, as part of a $220 million shovel-ready cycleways package announced by Associate Transport Minister Julie Anne Genter. “During lockdown we saw many more families and kids out on their bikes, ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New Zealand expresses condolences on passing of Vanuatu High Commissioner
    Foreign Affairs Minister Winston Peters today extended New Zealand’s condolences following the death of Vanuatu’s High Commissioner to New Zealand, Johnson Naviti, who passed away yesterday afternoon in Wellington. “Our thoughts are with the High Commissioner’s family and colleagues during this difficult time. This is a terrible loss both to ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government announces allocation of three waters funds for councils
    The Government has today set out the regional allocations of the $761 million Three Waters stimulus and reform funding for councils announced by Prime Minister Hon Jacinda Ardern this month.  "I want to thank Councils around the country for engaging with the Central Local Government Steering Group who have been ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Funding boost for students with highest learning support needs
    Students with high and complex learning needs, as well as their teachers and parents, will benefit from a substantial increase to Ongoing Resourcing Scheme (ORS) funding, Associate Education Minister Martin announced today. “Nearly $160 million will go towards helping these students by lifting their base support over the next four ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Govt connecting kiwis to affordable, healthy food
    Funding for innovative projects to connect Kiwis with affordable, safe and wholesome food, reduce food waste, and help our food producers recover from COVID-19 has been announced today by Agriculture Minister Damien O’Connor. “COVID-19 has seen an increasing number of families facing unprecedented financial pressure. Foodbanks and community food service ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Getting infrastructure for housing underway
    Eight shovel-ready projects within Kāinga Ora large-scale developments, and the Unitec residential development in Auckland have been given the go-ahead, Minister for Housing Dr Megan Woods announced today. Megan Woods says these significant infrastructure upgrades will ensure that the provision of homes in Auckland can continue apace. “The funding announced ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Napier walk and cycleway to improve safety
    The Government is funding a new separated walking and cycleway path along Napier’s Chambers and Ellison streets to provide safer access for local students and residents across Marine Parade and State Highway 51, Transport Minister Phil Twyford and Police Minister Stuart Nash announced today. Funding of $2.7 million has been ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • PGF creates more than 10k jobs, success stories across NZ
    More than 13,000 people have been employed so far thanks to the Coalition Government’s Provincial Growth Fund, Regional Economic Development Minister Shane Jones has today announced. The number of jobs created by Provincial Growth Fund (PGF) investments has outstripped the 10,000 jobs target that the Government and Provincial Development Unit ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Inaugural seafood awards honour sustainability
    Scientists and innovative fishing operators from Stewart Island and Fiordland to Nelson, Marlborough and Wellington have been honoured in the first ever Seafood Sustainability Awards. Fisheries Minister Stuart Nash has congratulated the winners of the inaugural Seafood Sustainability Awards held at Parliament. “The awards night honours six winners, from a wide ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Climate resilience packages for regions
    The Government is providing an investment totalling more than $100 million for regions to protect against and mitigate the effects of climate change, Deputy Prime Minister Winston Peters and Infrastructure Minister Shane Jones have announced. Six regions will receive funding from the $3 billion allocated to infrastructure projects from the ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Southern Waikato shovel ready projects get the green light
    Three major local projects at Te Kuiti and Otorohanga have been given the money to get moving after the impact of Covid 19, says the Minister of Māori Development Hon Nanaia Mahuta.  The projects range from a Sports Centre for Te Kuiti, a redevelopment of the Otorohanga  Kiwi House and ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Zealand extends Middle East and Africa peace support deployments
    The Coalition Government has extended three New Zealand Defence Force deployments to the Middle East and Africa by two years, Foreign Affairs Minister Winston Peters and Defence Minister Ron Mark announced today.  “These deployments promote peace in the Middle East and Africa by protecting civilians and countering the spread of ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Govt progress on climate change essential, risk assessment shows
    The release of the National Climate Change Risk Assessment shows that the progress this Government has made to solve the climate crisis is essential to creating cleaner and safer communities across New Zealand. “Because of this report, we can see clearer than ever that the action our Government is taking ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • $10m sport recovery fund open for applications
    The second round of the Community Resilience Fund is now open for applications for sport and recreation organisations experiencing financial hardship between 1 July and 30 September 2020. “The fund opens today for five weeks – closing on September 6. The amount awarded will be decided on a case-by-case basis ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Rakitū Island declared latest predator free island
    Minister of Conservation Eugenie Sage today declared Rakitū Island, off the coast of Aotea/Great Barrier Island, predator free. “I’m delighted to announce that with rats now gone, Rakitū is officially predator free. This is a major milestone because Rakitū is the last DOC administered island in the Hauraki Gulf Marine ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Funding to restore significant Māori sites in the Far North
    The Provincial Growth Fund is investing $8.75 million to restore significant historic sites at Ōhaeawai in the Far North, upgrade marae and fund fencing and riparian planting. Regional Economic Development Minister Shane Jones made the announcements following a service at the historic St Michael’s Anglican Church at Ōhaeawai today.  Just ...
    BeehiveBy beehive.govt.nz
    4 days ago