Allan Dippie on New Zealand's Housing Crisis

[@frwansie]

Building materials are too expensive, combined with land prices and compliance costs, consent fees make building expensive. Then you get rates and insurance...

[@roberthooker4970]

Yes, you identify private business increasing prices.

[@kir0nz]

The plain fact is that if we were to stop importing new residents the problem would(over time) go away. This is not to say that we should halt immigration, but that we should incentivize quality(not equality) residents and citizens staying in our country. Since we cannot fix the bottom feeders, who won't leave, we should try and keep the middle class majority happy and accommodated. Harsh reality, but also factual.

[@anthonysullivan4202]

with 200k+ immagrants a year, it's never gonna change...

[@Matowix]

Don't mention immigration. We need to flood in more and pretend it isn't happening

[@Pete-z6e]

Exactly.

[@olsaffa7679]

Start with education so we don't have skills shortages and prevent the brain drain. Near everyone going to Aus says they are better off there because homeownership is impossible, and there they at least can have something left at the end of the month. And no more low skilled immigration by getting NZ's own low skilled off benefits and out of entitlement mindsets.

[@JimmyStrings]

@@olsaffa7679 From what I understand a lot of it is not technically 'low skilled' because of the visa requirements. If a certain business (like the one I worked for) wants to keep their immigrant staff, they must declare the work skilled-labour, or whatever the terminology is, and then that staff must be paid the median wage! Now the problem is you want your median wage staff doing the most taxing work, and you can work them like dogs, because the money (versus the income they could expect to earn back home) is excellent, and the employer now has huge leverage over them because they need the job to keep their visa valid. Imagine coming from a place where the yearly avg income is around $10k NZD and then earning $50k. You send as much back home as you can to support your family and spend as little as you like in the local economy, living in a tight-knit group in a single dwelling. You may even buy property and build a house back in your home country if you can afford it. The incentives for this immigrant workforce are of course wildly out of kilter with what local staff could expect to achieve with their wages in the New Zealand economy, which is a big part of why employers love to have access to them.

[@adsdft585]

@@olsaffa7679 Since 1988 Auckland's population has doubled to 1.7 m. Both internal migration and overseas migration.C Bishop wants double again over the next twenty years. Should not government make economic insentives for business development in the south. Say in Wellington or Christchurch or Nelson.( a Port City). In the period 2000 to 2009 I think a green belt idea came to Auckland and city limit. Let's think.

[@paulleighton7078]

I’m a developer, the costs of consents , infrastructure and general bureaucracy is at such a level , I won’t be building any more after I’ve completed the current one. The costs mentioned above is about 25% of total cost 🤨

[@H2kfighter]

as a tradie, i've noticed the quality of work is getting worse too, so your paying more for less bro

[@anushkacindyshadiack1105]

What? Nobody can afford Whanganui these days.

[@Allstaris]

" I like producing land" That's a strange way to say it. Im sure there is a finite amount of land currently🤔 Can we stop foreigners buying nz land 🙏 for our Grand Children sake 🙏

[@GraehamM]

Developers like Allan care not for the beauty of small town New Zealand. Only how they can maximise profit turning them into economic zones with rootless foreign workers. If you ever want to have an overseas holiday experience, just go stay in Queenstown. All but guaranteed you'll be the foreigner...

[@JimmyStrings]

Too true.

[@Theresaisabiologicalwoman]

Here in Blenheim we have another 40 "refuge " families apparently from Malaysia they cannot speak a word of English & the tax payers are paying for their rent for an entire year! I know this only because my immigrant flatmate goes to the mosque and came home & told me as they are all going to the mosque all 40 are Muslim of course.....

[@MartinCraig-zt2sv]

Yeah sure. Malaysia is in the Commonwealth and English is compulsory in primary and secondary schools. must be struggling with the Marlborough accent maybe

[@pgreen8531]

Absolutely disgusting behavior from the previous government doing this to new Zealand citizens

[@ruslingmcgehan7137]

The reason nz house prices are so unaffordable is because in the 1980s it became the new investment plan.Just having one family home and possibly a bach changed to a home plus portfolio of rentals. Banks and government relaxed a once very conservative policy on mortgages, they did fiscal gymnastics to help you grow your debt. Why not there was tax relief and massive return on investment. Ordinary folk with FOMO joined in, it was the only game in town till now and reality and conservatism is creating a nervous tension in the market. No market can continue fantastic returns forever, NZ can't afford increased wages and house prices that are out of whack with overall world prices. A serios house price crash will cripple this country.

[@J.Smith-rc6wh]

the average house in Invercargill is more expensive than the average house in London, let that sink in

[@Matowix]

That isnt true

[@carrieflynn]

The average house in Auckland is at least 25 times the minimum wage salary in a year.

[@NaturalExplorerNZ]

average price in London is $1,512,677.28 nzd Invercargill is $540,000 stop talking bullshit

[@willtekata1763]

House are too expensive because there are far too many pigs between the clients and the actual builder.

[@MartinCraig-zt2sv]

48,900 NZrs say your wrong

[@roilhead]

​@@MartinCraig-zt2svIs that how many people voted for Labour?

[@barrygeary9362]

Why doesnt the gov build the houses then let the people pay them off then reinvest in more houses just like property speculaters do

[@thefrenchadventure]

Because that’s tax payer money used, would be badly done, is private business and socialism.

[@Allstaris]

😂😂😂 Home Owners didn't mind 300% increase of value until the rates bill arrived. It's a paper game of monopoly with the bank running the world.

[@Peter_Pepper_Love]

ANZ owned by Blackrock! 🤷‍♂️

[@olsaffa7679]

Housing as an "investment" undermines the nuclear family, with society (except the rich in enclaves) suffering. Landlords selling on a whim, causing turmoil to the family renting. Make it possible for poorer people to own their own homes and thus motivate them to work. Only landlords and banks are becoming richer and buying more, pushing up prices, and the majority of people cut out and enslaved to "investment decisions" of landlords and banks. Build, build, build, and build some more (3 bedroom family homes).

[@JimmyStrings]

Demand for homes needs to be restricted to citizens.

[@whateverbro9002]

What happens when the nuclear family gives the kids the house when they die? Eventually you get land lords. What we need is rather than a blanket landlord Ryle is targets on the megalandlord families. Mum and dad investors shud be celebrated. Their pension is not enough

[@olsaffa7679]

@whateverbro9002 mom and dad investors should invest in other investments than skimming money off of families, not celebrated. There's a stock market, businesses, and even commercial real estate. There is no valid excuse to add to the misery. I agree that the inheritance of residential landlordship is to be taxed to an extent where selling beyond one home makes more sense. NZ has 5.5 million people and enough resources for it not to be in such a self-destruction property bubble, debt to Aus Banks loop. And then people want to know why crime is increasing, while families are pressured because of politicians making decisions when the politicians themselves own 7 homes mortgage free. This isn't envy, it's common sense. Owning a home is a motivation to work hard and create stability. No more explaining to your wife and kids that on Sunday strangers are going to trapes through their house because the landlord is having an "open home." And we should pack up and start looking for another place to temporarily live.

[@marcusnz232]

Doesn’t work. They tried this in the UK. People who can afford nice houses in nice areas don’t want to live next to people who cannot.

[@gregkennedy8545]

Moved to the west coast 3 years ago, best move ever, house market here cannot keep up with the demand, to say no one wants to live on the coast is daft

[@Pete-z6e]

Should have said, no one in their fight mind.

[@felicitydelaney5327]

There isn't a housing crisis, there is a tenant crisis.

[@2hands_and_a_brain917]

...its a mixture of red tape, logistics and greed from the banks and councils, coupled with Kiiwis inability to save or use credit for the wrong purchases. As an immigrant, I have found it easy to buy several properties and become mortgage free over 23 years. I could not afford a home of my own in the country I came here from, so why could I here?

[@JimmyStrings]

Uh, are you saying you bought a property here over 20 years ago?

[@2hands_and_a_brain917]

Yes, and the interest rate was 11%! and I was a building labourer. So my point is, it was not easy but I did it because I knew I had to. Since became a builder with my own business and have now got a morgtage free farm!b Same principles applied....@@JimmyStrings

[@brucehardwick8824]

Bring Back NZ Standards 3604 For light Timber framed Buildings 1985 Version!! Imagine a house that only cost &1000 per square meter !!

[@godfreywaters8791]

Bruce, that makes a heck of a heck of a lot more sense than a lot of people would imagine, I'd bet most of the older building inspectors would agree also.

[@brucehardwick8824]

Godfrey thanks for that. Another racket that needs some serious scrutiny is our timber supply. Hybridized fast growth timber crops that do not have the strength of yesteryear, that require larger cross section milling (thus costs ) to compensate for the weaker timber!! Cheers @@godfreywaters8791

[@roilhead]

As a builder that has walked from the industry for a time out until things change like many others I agree. What very few people have factored into a new build house build industry revival is that the ability of builders is very low. A heap of the newly trained guys are now in Ozzy thanks to Chippy for leaving the back door open like a fool!

[@glennwr450]

Didn’t kiwi build solve the housing shortage 😂, along with hospital wait times , child poverty etc. the previous government fixed all the problems

[@roilhead]

LOL straight off the Labour PR spin web site.....

[@chchwoman9960]

A rent freeze would go a long way toward bringing house prices down

[@suefairbrass9163]

How can a rent freeze bring house prices down? When you own a home the mortgage, rates insurance and upkeep keeps rising and I have, and seen many people in tears over how they were going to get the extra money to pay them.

[@guyincognito3815]

@@suefairbrass9163well I guess that’s how it works… those people suffering end up selling, sometimes for a loss, thus making more housing available… not saying it’s right.

[@ronaldwarren1267]

Most building supplies are controlled by fletchers you not going to get good deal here

[@mra4955]

No, it really wouldn't.

[@chchwoman9960]

@@suefairbrass9163 For some this is true. Property managers are encouraging price hikes.

[@bennichols1113]

Wow you actually mentioned supply and demand

[@Peter-kk6rg]

Landlords where are you.Why have you gone silent, is because of Chris Luxon $52,000 accommodation allowance,he said it's within the law.

[@Peter_Pepper_Love]

Luxon would do well...to lead by good example! And not greed 🤷‍♂️

[@Peter-kk6rg]

@@Peter_Pepper_Love My point is that nothing is going to fix the housing crisis when the majority of members of parliament are property investors,and it's a financial disadvantage for them fix it.

[@Peter_Pepper_Love]

@@Peter-kk6rg yes Peter it's a sad reality of the caliber of our leaders or lack thereof 🤷‍♂️

[@cyrillawless]

Queenstown needs heaps of cheap affordable accomodation for its workers. I know of workers who are hot bunking it to cut the cost of accomodation so they can afford to eat

[@Allstaris]

Couple's WTF. Maybe there are individuals that would also like to own there own homes. Basically he builds homes for wealthy owners and rentals for his workers to live in within Busing distance to the new mega mansions and 1%ers Holiday homes. He is a cog in a very sick system, kinda sad he thinks he is helping. Citys are giant versions of central Otago made from concrete. Wealthy live, Workers work😢

[@J.Smith-rc6wh]

we have to tax people keeping houses empty in areas of great need. No one can find a rental in Wanaka, yet 40% of houses are full, full time, no amount of new houses are going to solve a housing crisis, where houses are only going to be 40% occupied, cheaper houses are still going to be the same. What we need is to tax people for keeping their house empty

[@ronaldwarren1267]

Dont mention fletchers it will be taken down

[@pgreen8531]

Hahahaa

[@TonyWhite-x3c]

In the mid 1980s the then Labour government turned New Zealand into a low wage economy. Successive governments in the past 30 years have not fixed this issue.Which effects family affordability for good housing. NFG from our Wellington friends.

[@kiwikiwi223]

How did they turn it into a low wage economy

[@myzenlifeinnature]

​@@kiwikiwi223 neoliberalism. Leave a job, new job at starting wage. Wages fell in the early 90s

[@kiwikiwi223]

@@myzenlifeinnature that's good to know. I thought it was more when muldoon put a freeze on prices and wages and sold off alot of the state owned assets

[@TonyWhite-x3c]

The Rodger Douglas experiment for the Lange Labour government. Followed the Chicago School of Economics.Free market economy which immediately put 300,000 New Zealanders out of work. Many have never had a proper job since this time. Thanks to Labour.

[@kiwikiwi223]

@@TonyWhite-x3c yeah nothing to do with national selling off our assets over the years 😂😂

[@adsdft585]

The debt based economy has contributed to this house pricing issue.

[@JimmyStrings]

Indeed. Whenever I hear a politician talk about housing "affordibility" I translate it to mean "how much debt can we manage to load up on the workforce without crashing the economy" It has nothing to do with making brick and mortar houses cheaper to build and own.

[@adsdft585]

@@JimmyStrings listen to Gary's Economics from the UK. He knows more most and can explain well.

[@JimmyStrings]

@@adsdft585 I will, thank you.

[@mattthesparky]

What an awful piece. I'm really disappointed in The Platform for this. You referenced New Zealand's housing crisis in the title then the actual piece was just about Queenstown Lakes area - which is the most distorted market in NZ. It might as well not even be here you could just talk about Aspen in the USA. Then "New Zealand's most successful developer" just talks about red tape in subdivisions and land banking. What a joke. Not even a mention of the escalating cost of actual house construction or the Building Industry Industrial Complex (the conflicted relationship between Fletcher's , Carters, James Hardie and MBIE, BRANZ/Codemark and standards new zealand) and the effect of that conflict of interest on the building materials and systems market. You guys go banging on about how terrible the quality of MSM journalism is these days then you go and put this out there. Pull your socks up.

[@JimmyStrings]

Agreed it was rather disappointing.

[@pgreen8531]

I ďiubt he has don much to help ordinary people.

[@roberthooker4970]

SP Capital ,Australian produced a very detailed report on this issue. We know NZ needs to stop Auckland growing. Houses on a section rise faster than apartments. It indicates land price change. NZ cities spread and it increases costs.

[@marknicol4957]

2010 Chile Earthquake Afterwards lots of homeless. Government initiative was a development called Villa Verde. Government built half a house and in time up to you to build the other half or not. Should be looked at GREAT IDEA

[@Peter-kk6rg]

New Zealand Rental Nation ❤

[@roberthooker4970]

Land banking is an old idea. What local district plan idea work now dsys?

[@adsdft585]

In 36 years since 1988, the Auckland population has doubled to 1.7. Overseas immigration and internal immigration have contributed to this. You can clearly see the speed of change has been faster than the infustucture growth.

[@tiatamara11]

Please get tents that don't leak please......what was the question again. You wont get a loan from the fiat boys...you'll have to do bitcoin for free now.

[@adsdft585]

You cleverly identify how the public sector, both local and central, has not built state or council houses in numbers since 1993. Those that have are in bigger cities.

[@ChelleMEis]

No taxes would work 😂

[@nzkid2599]

How dare you insult Wanganui Michael our population is actually growing

[@MartinCraig-zt2sv]

Yeah, less than the NZ population is growing. Paddling hard but going backwards...

[@nzkid2599]

@@MartinCraig-zt2sv oh be quiet!

[@joshcheck7532]

Kaitoke prison brings in loads of out of towners

[@davidk6264]

i grew up in state housing in Wanaka. It was very affordable.

[@adsdft585]

Great to hear. 1993 to 2023. Labour nationwide added 17,000 state houses, but National reduced the number by 2,000 even though the population increased at a rate faster than natural births.

[@daveid6244]

Build smaller homes but regulations dictate the higher costs like we did years ago add on as urr family grows but no let's build bigger flasher homes so the finnised home costs you heaps I was in NZ 30 years ago got divorced kept the home but put me deeper in dept I looked at my financial situation decided to sell up go to Australia and start again best thing idd done in years

[@shaunryan2473]

Houses are being put up ferther and wider then ever before and even faster then ever i dont see how we have a shortage,

[@roilhead]

Incorrect. Consent numbers are up, actual house build numbers are very low. You can thank Labour for raising the cost of new builds to an extent that it is not affordable to build. Don't get caught up in the Labour spin 'consent numbers' have nothing to do with the amount of new builds.

[@shaunryan2473]

@@roilhead I'm just going off what I see with all the subdivision being built around,

[@mattyallen3396]

You forget Gisborne

[@marcusnz232]

I certainly try!

[@mattyallen3396]

@@marcusnz232 understood! Horrible place

[@firequeen7872]

Why don’t you talk about the actual crisis aspect of the housing crisis? The horrendous personal and financial cost to families trying to make a HOME the gross and intrusive behaviour of property ‘managers’ the effects on kids who have to leave towns, schools, friends, to find a home, the strain of unrealistic rents, the psychological damage done knowing you have zero power and zero stability and all is at the whims of a landlord. The scary fact that sometimes even the storage units are full so if you get caught without a home and a storage facility your houselot is also homeless. Talk about that.

[@roberthooker4970]

It seems that part of nz in south has higher income earners buying house no. 2

[@Alex-it5ej]

The answer.. make housing more affordable aka crash the market to sustainable levels.. if we dont, say good bye to the kiwi youth and hello to low standard immigrants ( educated immigrants are not interested in low wages and high house prices & cost of living) do we want the nz we know and love? do we really think a million dollar home looks like ours? Or do you want an nz where nearly half the citizen were born in asia?

[@howardngamotu5795]

What happened to the time when you could buy a state house after living in it for a few years oh yea thats right jobs could be a lifetime but capitalism turned realty into a game of monopoly with real lives

[@OXSEnterprises]

Red tape and nonsense, too much foreign ownership, too much Aur BnB, and too much greed. No capital gains tax meaning you can own a house and operate it like a business but not pay tax like a business. Everyone wants to be a millionaire through owning a property with huge mortgages and now high interest. Unsustainable rental market. Kiwis only seem to know how to invest one way and that's through property, our own greed has caused a lot of the problems.

[@Peter-kk6rg]

$52,000 ACCOMMODATION ALLOWANCE FOR CHRIS LUXON.HAS PREMIUM HOUSE FREE TO LIVE IN

[@paulthomson2288]

Everyone wants a 4 bedroom house with 3 bathrooms that has been architecturally designed. Not going to happen so need to set a lower target and work your way up. Owning a property has never been easy or a right. Get real about that fact before crying and blaming the previous generations.

[@Peter-kk6rg]

N.Z Tenants should get half the capital gains on the property when sold.Vote Green.

[@gn7344]

Peter, there wouldn't be a landlord left in the country. Capital gain is the whole purpose of owning rental property.

[@Peter-kk6rg]

@@gn7344 let's face the elephant in the room,majority of the country rents.And to solve the housing crisis it going to take radical change and new idea's around property rights.The majority would to see a fair system and wealth diversity.

[@ala-hc4rx]

​@@Peter-kk6rgsorry but nz has one of the highest rates of home ownership in the world.over 66 pct live 😊e in there own home. Chec k the numbers out on official statistical wesites

[@Peter-kk6rg]

@@ala-hc4rx You are easy fooled, they been given those same statistics for over thirty years. Mike Hoskins revealed that the rental population is now 63%.

[@Peter-kk6rg]

@@gn7344 $52,000 accommodation allowance for Chris Luxon. He has Premier House to live in for free,this is what I am talking about a rotten and corrupt system and enriches the most wealth New Zealanders at the expense of the average taxpayers.

[@jackfarmer4880]

Here’s a simple solution. Stop buying coffees every day, avoid eating out at Ponsonby Rd. Cancel your gym membership. Also stop whinging about it and start saving ffs. I’m sick of hearing about it. It’s just a moan fest🥱

[@JimmyStrings]

Delusional

[@jackfarmer4880]

What’s delusional about that?