Goldman Sachs’ warning that New Zealand has the developed world’s most over-priced housing market, with a 40 per cent chance of a bust within two years, shows the consequences of National’s nine years of housing neglect, says Labour Housing spokesperson Phil Twyford.
“If the housing bubble pops and causes economic chaos, the blame will sit squarely with Bill English and National.
“National has wasted nine years while the housing bubble has grown and reached the point where it could pop any moment.
“A housing bust would see a slow-down in house construction. When only half the houses Auckland need are being built at the moment, a slow-down would be a disaster. The resulting job losses and reduction in household confidence would ripple through the wider economy.
“A housing bust could be just as bad as skyrocketing prices. We need stable house prices and a massive increase in the construction of starter homes families can afford to buy.
“We urgently need fresh thinking. Labour’s housing package will stabilise house prices, avoid the boom-bust cycle, increase the number of houses being built, and provide stability to the sector,” says Phil Twyford.