Ideological shift needed to address housing crises
A leading New Zealand economist says an ideological shift is needed to address the nation’s growing housing pains.
Economist Shamubeel Eaqub spoke in Auckland recently on the housing crisis.
At the event, organised by Crowe Horwath and Minter Ellison Rudd Watts, Eaqub said that New Zealand is in an unusual economic situation.
This is caused by an uneven economic growth, and a political environment which is not geared towards solving the current challenges, Eaqub said.
On the housing crisis, he pointed to the need for a fundamental shift in processes and regulations for the housing sector if deeper problems are to be averted.
‘‘House prices in Auckland are higher than in London and New York, relative to incomes,’’ he said. ‘‘What is more concerning is home ownership has been falling since 1991 and is now the lowest it has been since 1956.’’
Eaqub also pointed out Aucklanders are going to battle high debt, rather than high inflation over the next decade.
He said the key to solving the crisis is a combination of building many more homes that are also the right types to meet the needs of Aucklanders.
Shamubeel Eaqub says it is concerning home ownership rates have been falling since 1991.