I caught up with Leonard Hong, Analyst at The New Zealand Initiative – A Think Tank – who released a report on housing in New Zealand.
https://www.nzinitiative.org.nz/reports-and-media/reports/the-need-to-build/
“The political ‘buck passing’ of the responsibility for unaffordable housing by successive governments in New Zealand has created extremely expensive housing markets in cities such as Auckland and Wellington – and a national housing crisis. Auckland is the sixth least affordable city among 92 major global housing markets, according to the 2020 Demographia housing survey. The real price of housing in New Zealand increased by 171% from 2000 to 2019, compared with just 11% in Germany in the same period. Despite former Housing Minister Phil Twyford’s reforms, the government has prioritised supressing demand and targeting financial speculation from overseas. Demand-side solutions are just tinkering at the edges of the problem. Long-term demographic transformations and changing household sizes are affecting overall housing demand. Inflexible housing development is the core problem, and only freeing up enough supply can solve our housing unaffordability and overcrowding.”
Go to the Walk The World Universe at https://walktheworld.com.au/
– This story assumes that the the amount of households will continue to grow (either in NZ, Australia, US, ……….. etc.). But I see a movement in the opposite direction. As a result of the COVID pandemic I have read already some stories that state that more and more millennials are moving back to live with their parents.
So, instead of smaller houses there is going to be a need for fewer and larger houses.