Investing in affordable homes

Kay Saville-Smith

Abstract – Tuhinga Whakarāpopoto

Aggregate undersupply of new dwellings has been cited as contributing to New Zealand’s high house prices, falling owner occupation and increasing numbers of households burdened with unaffordable housing.

While central and local government are encouraging new builds and the release of land for residential purposes, high numbers of residential new builds are not affordable housing for those with limited resources. Building consent rates in New Zealand increased considerably between 2001 and 2004. If renting households were to look for a first home, 75% would not be able to meet the housing affordability benchmark. Two-thirds of renters were burdened with unaffordable rents. The key to the apparent contradiction between increased housing stock and the prevalence of households burdened by unaffordable housing lies in shifts in the investment in and building of lower-cost housing.

Other reports associated with this research

Saville-Smith, K. (2017). Thinking about the logics of affordable new build delivery: Some preliminary thoughts on the structural position of different types of new-builders. Report for Building Better Homes, Towns and Cities SRA: The Architecture of Decision-Making, June 2017. Wellington: BBHTC.

Articles associated with this research – Karere Tūhono

Case Study: Investing in affordable homes

Originally published in Build magazine, issue 163, December 2017.

02 December 2017: While central and local government are encouraging new builds and the release of land for residential purposes, high numbers of residential new builds are not affordable housing for those with limited resources. >> Read More

Keywords – Kupu Hāngai

Housing, house prices, urban development, new builds, housing affordability

Fields of Research – Āpure Rangahau

Housing supply

Date – Te Wā Whakarewa

2017-12

Type – Te Auaha

Magazine article

Collections – Kohinga Kaupapa

• Te Tai Tokerau / Northern Aoteoroa New Zealand
• Tāmaki Makaurau / Auckland
• Hauraki-Waikato / North Western North Island
• Waiariki (Tauranga, Whakatāne, Rotorua, Taupo)
• Te Tai Hauāuru / Western North Island
• Ikaroa-Rawhiti / East Coast and Pōneke / Wellington
• Te Waipounamu / South Island
• Homes and Spaces for Generations
• Mana Kāinga / Housing

Citation – Kupu Hautoa

Saville-Smith, K. (2017). Investing in affordable homes. Build 163, December 2017/January 2018, pp 56-58. Wellington: BRANZ.