NZ Migration Loss: Affordable Housing Required

Press Release – Hugh Pavletich

The reality is that we need to be starting on the path of providing $200,000 new starter homes ($50,000 for the serviced lot / section – $150,000 for the house construction) ,or a little higher than this initially, on the fringes of our major urban areas …

NEW ZEALAND MIGRATION LOSS:
AFFORDABLE HOUSING REQUIRED TO STEM TIDE

Hugh Pavletich
Performance Urban Planning
Christchurch
New Zealand

23 November 2011
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Radio New Zealand : News : Business : Migration loss will impact housing, demand

Gloom lies ahead if people keep leaving NZ | Stuff.co.nz

Exodus Of New Zealanders To Australia Nears Record… | Stuff.co.nz

NZ has first annual net migration loss in year to October since 2001, Stats NZ says; Net loss to Australia just below 2008 record | interest.co.nz

How much longer do we have to wait, before the Government ALLOWS affordable housing to be built in New Zealand?

The reality is that we need to be starting on the path of providing $200,000 new starter homes ($50,000 for the serviced lot / section – $150,000 for the house construction) ,or a little higher than this initially, on the fringes of our major urban areas – particularly the attractor markets, such as Auckland, Tauranga, Hamilton, Nelson and Christchurch.

First – this will require that the appropriate mechanisms are put in place to allow fringe urban land prices to be at or near their true rural value of around $10,000 to $40,000 per hectare – not the artificially engineered inflated prices of $500,000, $1,000,000 per hectare and often a lot more.

Second – finance infrastructure appropriately, so that those who own it, are responsible for its equity and debt financing, charging rates / fees for its use – along the lines of the United State Municipal Utility District bond financing model. All infrastructure (other than roading and footpaths) should be financed this way, for what should be obvious reasons of economic efficiency and intergenerational equity. It is grossly inefficient and unjust to load these costs, with subdivision and construction margins, in to new home buyers.

Third – get some sorely needed and elementary performance disciplines inculcated in to the Local Government sector – so that they actually start managing them, instead of the current bumbling practice of administering them “after a fashion”, where the Indians run these shows to suit themselves.

The writer explained these issues with respect to Christchurch recently, within Christchurch: A Political Circus and Christchurch: A Council Stalled Recovery.

None of this is “rocket science”. The problems and solutions are well known.

The only ingredient lacking is political leadership. This unnecessary outwards migration is entirely of our own making.

Don’t young New Zealanders deserve a future in their own country?

ENDS

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