Plenty has been written on the damaging effects of NZ’s house price inflation. It prices young families out of owning their own home (slowly destroying what has been part of the social fabric of the country), it sucks investment out of more productive sectors of the economy, and so on. And – it’s out of control again:
$389,000 to buy a Kiwi dream
House prices have reached new heights, with the median price for a Kiwi home $389,000 – but to buy your dream home for that amount, you may need to move to Oamaru.
Latest data from the Real Estate Institute shows the national median house price reached a record $389,000 last month, up almost 10 per cent from the previous year.
Ten percent in one year is insane! It’s a massive increase in a cost that every new family faces, and it isn’t reflected in the (therefore artificially low) CPI and the linked measures that depend on it.
Just as a reminder, Labour has policies which address the most damaging aspects of the house price binge. KiwiBuild, to increase the supply to first-time buyers. Capita gains tax, to redirect investment. So where exactly is National on this issue? What is their policy? I know I know, leave it to the market. That worked so well in America…