Ide­o­log­i­cal shift needed to ad­dress hous­ing crises

Central Leader - - YOUR PAPER, YOUR PLACE - TOM CARNEGIE

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.

SUP­PLIED

Shamubeel Eaqub says it is con­cern­ing home own­er­ship rates have been fall­ing since 1991.

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