nzherald.co.nz

Dita De Boni: Homing in on the real Kiwi crisis

By Dita De Boni
9:47 AM Thursday Jan 31, 2013
Illustration/ Anna Crichton

Illustration/ Anna Crichton

The political year has begun and if there's one thing all parties can agree on, it's that we have a "housing crisis" on our hands.

But is it a crisis in the sense that high-earning professionals can't get their platinum ring-laden fingers on a four-bedroom, recently renovated grammar zone villa for under $1.5 million? Or that university graduates feel put out about not being able to afford something roomy in Pt Chev or Westmere? Or, as our political leaders seem to think, there are thousands of working poor just waiting for the chance at a two-bedroom shoebox in Papakura?

The exact shape and scope of this problem remains unclear to many and yet solutions abound. Labour leader David Shearer, doing his best Dilbert impression, has outlined a frankly fantastical scheme to build just over 192 new homes a week - something like 27 a day - from the moment he takes office. Shearer, who once spoke to a beneficiary on a roof and so knows a little something about housing for the poor, has of course had to modify his original bombast: the houses will be small, outlying and probably a fraction more than the promised $300,000 norm in most cases. Which sounds like many of the houses already going for a song in fringe areas.

Ten thousand more like these, built at warp speed - once Shearer has solved the manpower crisis in the construction industry, of course; a massive korero with everyone even tangentially involved in building houses later in the year will provide the road map towards this happy confluence of jobs, homes and energy efficiency which will transform the economy.

Sounds great, and comes from a great place. Just like the Greens' effort, which will see families with no equity "rent-to-own" state-built houses.

Many people believe the government should have a hand in the housing market to ensure everyone has a basic level of shelter (even though they voted in a government that patently doesn't); the unknown is whether large-scale government intervention of the types proposed will really be able to create desirable communities outside those everyone is currently attracted to like (well-leveraged) flies.

No such visionary schemes from the National Party, but a promise to speed up the new-housing path from drawing board to ribbon-cutting, as well as plans to wrest control of unused land from local councils. The other great carrot promised by Prime Minister John Key: the steely eye of Nick Smith across the housing sector. For some reason, taken as a package, the Nat plan does little to inspire confidence.

Could it be the very ungrammaticality of the promise? (Key promised Smith would produce a housing plan which kept "that Kiwi dream alive of buying their own home".)

Could it be the idea of giving developers too much latitude or is it an issue with Smith's steely eye itself?

Perhaps the real problem is the over-arching one; the perennial one.

It's not that housing is unaffordable, it's that wages are too low and that surviving on them, which many in the community do while raising a family, is an almost impossible ask. Again, as the political year kicks off, we have the Band-Aid answers to problems that require radical, bold solutions; an overhaul of the game-changing kind our economy hasn't had for a good 30 years.

Vague promises to house the poor and kick local authorities into action seem anaemic by comparison.

* Illustration by Anna Crichton: illustrator@annacrichton.com

By Dita De Boni
Paul (New Zealand) | 09:56AM Friday, 01 Feb 2013
I'm 37, slogged my guts out with the wife, paid off the loans, earn reasonably average (?) income (60k) put off having kids and over the last 10 years we've managed to pull a deposit of $90k. So in all respects we've done it 'right' with no help from anyone and without whinging or expecting anything, or wanting to live in Westmere. But guess what, and after all that we've decided that now even though we can now 'afford' a house in Auckland, they just aren't worth it. You can keep them or sell them to the Chinese. I'm embarrassed that the only thing NZ'ers care about is selling their houses for more than they bought them for. I'll pay over average (and my taxes) somewhere else just to get away from you all.
Richard (United States) | 10:09AM Friday, 01 Feb 2013
With growing population and constrained supply, high house prices in Auckland are the solution, not the problem.

Auckland is growing in population and people have to start living in apartments spread across the city, much like Sydney or any large city in the world. While it isn't 'Kiwi' to live in apartments, there aren't any harbour cities in the world with 1.5m+ people living in quarter acre blocks. Wellington with its scarcity of land is probably in a similar situation.

While its nice to try to encourage people to move to smaller towns or Hamilton/Christchurch which have more space, all over the world people are moving to cities so its unlikely to be successful.

So start building more low rise blocks of flats, they dont have to be ugly or undesirable, we just need a lot of them to get housing affordable again.
Arch (Mt Wellington) | 10:09AM Friday, 01 Feb 2013
"Radical bold solutions, an overhaul of the game-changing kind." These are fine-sounding phrases, but devoid of content. The problem is that our wages are too low? If only we could find some way of getting New Zealanders to become much better paid!

But in the real world, global economics are driving wages down. Jobs are disappearing (another 192 redundancies, this time in Oamaru). For every one person who hits the big time, there are ten people hitting the skids.

The "perennial problem" is how to become more productive. Then, with luck, you might be able to bring in the kind of income that would make a $300,000 house "affordable".

But this enhancement of productivity is not something that can be brought about en masse. It will be the achievement of talented, determined individuals, who are not afraid of hard work, change and risk.
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