Developers

In Auckland, the Unitary Plan may help some developers if it allows them to put higher-density buildings on their land.

But the pace of building is glacial in most parts of the country and construction costs are increasing, making many projects less lucrative for developers. Banks are also backing away and are less willing to support them.

‘‘Developers are suffering from a lack of credit, which is not only unlikely to get better for many years but will probably get even worse,’’ Alexander said.

Greenaway-McGrevy said construction costs had increased at twice the rate of general inflation over the past decade. If prices are falling, some developers may not be willing or able to take the gamble of building now.

The Government

Normally, falling house prices would be bad news for the Government. But this time, lower prices may work in its favour because the rest of the economy is sound and consumer confidence is generally high. There is a general sense that house price rises should slow for social reasons.

Kiernan said the Government’s response to housing affordability issues could not be described as good. He said it had been a problem since before the last election but no real solutions had been offered.

"It’s a perfect storm with a large number of factors that have come together to drive the market up.

‘‘But if there was a more effective Opposition the Government would have come under a lot more pressure.’’

Regional New Zealand, where voters sometimes feel ignored by politicians, may be buoyed by the fact that their house prices are still rising.

The Opposition

Housing could have been the Opposition’s big chance to win some points against the Government, but its attempts have not stuck. Now the heat seems to be going out of the argument just when it needs it most.

‘‘It’s just luck for the Government that Labour did not seem to have any clear ideas of what to do, either,’’ Kiernan said.

Banks

Banks have done well from New Zealand home loan borrowers over recent years.

A KPMG report showed that lending grew in 2016 at its fastest pace in eight years and banks made an extra $127.4 million from loans than they had the year before.

However, Alexander said banks were now suffering reduced mortgage sales because of the lending restrictions introduced by the Reserve Bank and their own tightening of lending as they struggle to raise deposits in New Zealand.