- advocacy of a series of Government roles to unlock land, and
- total ignoring of the primary cause of house price escalation.
In the second part of this series of 3 stories today, you can read an abbreviated version of the briefing paper – abbreviated so you get the crux of their message forward.
Separately, the third part, I’ve written a piece which hopefully demonstrates that if the starting point for remedies is wrong, the whole fix is likely to be marred.
I think this topic is the most important in terms of land use, urban development & community creation, and highly important for job creation & access to jobs.
Adopting the Treasury view would lead New Zealand, and Auckland in particular, along a track which would tamper unwisely with relationships between economic factors, create unnecessary new bureaucracy and – this is the heart of it – not solve the problem.
For 3 years I’ve been under pressure to write more about the successes of community housing providers and the constraints on their performance. Performance in that sector is from the heart, but I regard it as a sticking plaster on a – yes, shameful – unnecessarily created sore.
Scores of homeless people have made the streets of the downtown business district in Auckland their home, starting from a number of unmitigated causes. They shouldn’t be there because they shouldn’t be homeless. We as a society have failed to model an economy which meets all of our society’s needs.
While trade in commercial properties is an important focus of this website, I see the shifting sands of residential change as critical to both general urban development and also to the importance of different locations to commercial pictures.
Is the failure of councils to rezone enough land for housing the primary cause of the upward spiral in house prices?
In Auckland, going back to the 1990s, yes. More recently, the spike in immigration in 2003-04 began the housing shortage which nobody was prepared for. That problem has been accentuated by record immigration over the last 5 years, but is being partially reduced by the greater ability to intensify in existing suburbs following implementation of the bulk of Auckland Council’s unitary plan in November 2016.
Related stories today:
- Housing land shortages, the Treasury view, my take on the state of play & where to next
- Treasury view: Take harder approach to land use regulation
- A few adjustments can make our housing issues dissolve
Attribution: Treasury briefing paper.