OECD cites RBNZ actions in big house price move
Robertson and the Reserve Bank have previously denied responsibility for the surge in house prices after their decision to print $58b to unleash a ‘wealth effect’ boost for the economy. But the OECD sheets the blame straight back to the Government and the Reserve Bank in its report (bolding mine).
“Runaway house prices are a major drag on wellbeing in New Zealand, especially for first-home buyers, and are by far the greatest concern identified by households in the IPSOS NZ Issues Monitor. Real house prices had already increased much more than in most other OECD countries since the turn of the century before the COVID-19 pandemic hit but went on to rise by another quarter since then, largely owing to the monetary policy measures implemented to support the economy House prices have also increased more relative to fundamentals – household income and rents – than in most other OECD countries. The large rise in house prices has increased wealth inequality between house-owners and non-owners.” OECD
We are different and it is a crisis
Here’s the OECD’s charts showing the scale of New Zealand’s exceptionally awful housing and rental affordability numbers.
Here is the final nail in our society’s housing coffin. This chart shows the share of the population under intense rental stress. We are the worst in the OECD.
Go woke. Go broke.
Labour’s shame…highest house prices in the world,highest rents in the world,over 23,000 people living in…motels.
The Kiwi dream of home ownership smashed for future generations.
Few thinks it’s just about first home buyers
No, it is about not getting any one to work at minimal wage if rent and morgage goes up
Labour’s shame along with all their other blunders that have attacked the poor and made the rich richer.
Kindness now has a very different meaning.
Surely no one is going to say Labour have done a good job for the needy people of New Zealand.
It’s criminal incompetence from a bunch of academics.
Whether or not you left or right leaning this incompetent Labour Government has to go for the sake of the country’s future.
Well actually the government has done a good job with Covid because many of our poor and needy are still alive as they haven’t died from Covid even though many of the rich business people and our politicians are crying for the borders to open and MIQ to close.
It shows how selfish and self centered many are as its all about them and not all of us. And Luxon acting like he cares about poor people and his party wanting to be seen in a different light yet his party are keen to open the borders now despite them knowing many peoples have not had boosters it seems to be selective kindness when it suits, like weasel words.
I see today the Labour Government is opening our borders in stages.
They have taken the advice National/Act and leading business men gave them.Which is good.
They need as much advice as possible given their Ministers are bereft of the capability.
National taking credit for something they never did is normal for them.
You falling for their populist crap is normal for you Jeremy.
They have taken notice of internal polling. Hence the typical delayed reaction. It’s how they roll.
End of story.
home ownership is no longer the issue maybe down the road but not now, the issue is roofs over heads..and if that means govt then that means govt.
and we don’t need reports/graphs/international opinions….WE ALL KNOW THE PROBLEM let’s just at least try, maybe, if it’s not too much trouble to attempt to fix it or at least ease the situation…frankly most people don’t care how..just get it done pronto.
Yes you are correct just get it done.
Problem is incumbent Government don’t know how.
oh they know alright, they just don’t wanna grab the nettle.
Time to get rid of labour and their parasitic friends and let the free market off the chain! Then it won’t be long after that, that it will collapse. Good and proper!
FREE MARKET. To the classical economists, an economy free of land rent, usurious banking practices and monopolies in private hands. But as finance capitalism has superceded industrial capitalism, it has invented ” free market” rhetoric to mean a market free for rent extractors to obtain land and property rent, natural resource rent, monopoly rent and financial gains “free” of government taxation or regulation such a a CAPITAL GAINS TAX. This inverted re-definition depicts a free market as one free for the financial and propertied classes to subject the economy to a network of extractive tollbooth fees. Such a “free market” has become a doublethink term for the path to neo-feudalism, financialisation and kindred rentier policies. J is for Junk economics by Michael Hudson page 105
Agreed.
No matter how it’s framed, those graphs are an international embarrassment and indictment upon this government.
They scream Labour are useless and worse, creating worsening serious problems the longer they remain in power.
I note today a rent control proposal from Poto to, I guess, hide the shame they’ve help create. Desperate, stupid and futile and something I would expect the politburo would have cooked up. It’s up there with the doomed Carless Days scheme in 1979 and “Maximum Retail Price” scheme (MRP) in 1974. Both unbelievable nowadays and just as pointless.
and the nats/act master plan to resolve the situation is? do elucidate, I’m all ears, xray.
No idea what they think but Labour’s track record, shown in thise graphs, speaks volumes. They have made a bad situation an horrendously worse. And we know they will make it even worse.
They cannot remain in power because the damage they’re inflicting is untenable!
Yes in less than 5 years they have destroyed our future.
xray can you tell me how the nats/act would be any better..
honestly now..
can you?