Report shows need for government leadership on affordable housing

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Source: Green Party – Press Release/Statement:

Headline: Report shows need for government leadership on affordable housing



Young families need affordable, energy efficient homes close to places of work and public transport, not large, expensive houses in distant suburbs

The New Zealand Initiative’s report on affordable housing illustrates the need for government to be involved in the building of affordable homes and in creating a pathway to owning those homes for young families, Green Party housing spokesperson Holly Walker said today.

The report, entitled Priced Out: How New Zealand lost its housing affordability, is being launched tonight and examines how New Zealand became a home-owning society thanks to government house building programmes and the Crown passing on its low cost of capital to first home buyers through the State Advances programme stating: “The state, through State Advances Corporation 3% loans and a corporatist approach to building and construction, ensured that New Zealand enjoyed very high rates of building and higher levels of private homeownership than had previously been the case”.

The report finds that the end of these programmes and the subsequent domination of building by private developers has seen the number of homes built fall while house sizes have increased dramatically, both of which have led to high house prices well out of the reach of ordinary families.

The Green Party has proposed a government programme to build affordable homes in modern, compact urban form and the Progressive Ownership scheme to give young families a pathway to homeownership, much as State Advances once did.

“This report shows that it was government leadership on affordable housing that created high home ownership and gave families stability. The Greens’ Progressive Ownership proposal follows in the footsteps of State Advances and will provide an affordable pathway to homeownership for families again,” said Ms Walker.

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“The Green housing plan, like its predecessors, recognises that the market left to its own devices fails to provide affordable homes for families. Where there’s market failure, government needs to step in. It worked with State Advances and Progressive Ownership will do the job in the 21st century.

“Unfortunately, the report authors ignore the lessons of the history they so succinctly lay out and, instead, advocate for more sprawl. We know that more sprawl isn’t the answer.

“The lure of cheaper land in sprawling suburbs is fools’ gold; it just means higher costs for infrastructure and transport. Australian research shows that, when the full infrastructure and transport costs are accounted for, building sprawl is more than twice as expensive as compact urban design.

“The Key Government’s current efforts to override local councils and facilitate more sprawl won’t get the houses that we need built. Submitters to the Government’s Housing Accords and Special Housing Areas Bill have made it clear that land supply is not the issue and more sprawl won’t result in improved affordability. Young families need affordable, energy efficient homes close to places of work and public transport, not large, expensive houses in distant suburbs,” said Ms Walker.

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