House price affordability is a perennial topic.
Neither main political party really wants to burst the housing bubble. The median voter theory predicts political parties will choose the policies that best reflect the interests of “the median” voter: the interests, tastes and prejudices of “most” voters.
And while “most” voters (as opposed to youth non-voters) own a house, and have or are trying to getting into residential investment, they’re not that interested on anything that bursts a housing bubble and decreases prices.
But the long term implications for New Zealand are dire.
If a generation of New Zealanders – youth, talented and able – cannot buy into their country and create a life older generations already have, they will leave New Zealand and find a place overseas where they can.
Our housing crisis today will create a brain drain and population demographic shift tomorrow.
Update (9 Dec): further evidence the govt isn’t serious about burst high land prices – no appetite to remove Auckland Rural Urban Boundary which keeps land prices, and consequently house prices, high. https://www.newsroom.co.nz/infrastructure/auckland-rural-urban-boundary-lives-on-after-govt-u-turn
Apparently, this “idea” https://link.springer.com/article/10.1007/s12061-008-9010-8
“… that changing Auckland’s rural-urban boundary will fix the city’s housing woes is outdated and has been superseded by other progress we have made in our first term.”
Housing Minister Megan Woods
Problem solved then.