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Nats’ Budget locks in housing crisis

National’s ninth Budget forecasts house prices will rise at three times the rate of wages, locking in the housing crisis for years to come, says Leader of the Opposition Andrew Little.

“After nine years, all National can offer is a continuation of the housing crisis. Budget forecasts show an 18 per cent rise in the average house price by 2019, with just a six per cent increase in wages. Where house prices go, rents will follow.

“National’s only answer to the housing crisis in Auckland is one new affordable house for every 100 new Aucklanders. Labour will build 50,000 affordable homes in Auckland and a further 50,000 nationwide.

“The Budget offers no solutions to the housing crisis. The investment needed in housing, health, education, and infrastructure has been sacrificed to pay for National’s $2 billion election bribe.

“It’s time for a fresh approach. Labour will not splurge on an election tax bribe. Instead, we’re focused on what really worries Kiwis. We’ll build houses that people can afford to buy, and sell them to first home buyers at cost. We’ll reverse National’s health cuts and boost mental health services. We’ll ensure schools are funded properly and make three years of tertiary education and training fees free. We’ll make investments like light rail in Auckland.

“National wants to bribe voters before an election; Labour is focused on investing in what really matters so we can we can build a fairer New Zealand for all Kiwis,” says Andrew Little.

 

  2017 2018 2019 Cumulative
Wages 1.2% 2.6% 2.3% 6.2%
House Prices 5.1% 7.8% 3.9% 17.7%

Source: Budget Economic and Fiscal Update 2017