New Zealand Labour Party

Kiwis nationwide now paying for housing crisis

The Government’s failure to tackle the housing crisis is now affecting the entire country with nationwide house price inflation in the past year hitting 26 per cent, Labour’s Housing spokesperson Phil Twyford says.

“None of National’s tinkering or half-baked, piecemeal policies are having any impact in slowing skyrocketing house prices.

“Inflation at this level is dangerous. National’s negligence has allowed the housing market to go right to the brink of a bust. No wonder the Reserve Bank says the housing crisis is a threat to financial stability.

“Despite predictions the market is cooling off, July sales prices released by the Real Estate Institute show the market is still running hot.

“With nationwide house inflation for the year to July hitting a record 26 per cent, it is little wonder young New Zealanders are giving up on the Kiwi dream of home ownership and astronomical rents are forcing families out of their homes and into cars and garages.

“Today’s fall in the official cash rate will only fuel the house-buying frenzy speculators are in.

“While the Government continues to deny there is a housing crisis, these figures show the rest of the country is now also paying the price as Auckland investors buy up large in the regions –
pushing up prices and driving out first home buyers.

“If National was serious about getting families into homes, they would launch a government-backed affordable house building programme, crack down on speculators and review the immigration policy to take pressure off the Auckland housing market,” Phil Twyford says.