With over 40 years of urban and economic development experience in both Australia and New Zealand it wasn’t too difficult to connect the dots between neoliberal political agenda and unaffordable housing. Our politicians on the right (and the left) resemble zombies stuck on the road to nowhere — caught in the headlights of a neo-liberal theocracy and unable to move forward or even back to the time when our collective social conscience was alive and well. Luckily there are alternatives.”

— Níall Mayson

Why we need to re-think housing policy.

New Zealand is a poster-child for unaffordable housing and market instability. It’s disingenuous for anyone to contend that house prices, annual price growth, overburden costs and building costs are sustainable. OECD house price data for the period 2000-2023 shows nominal house prices here increased ~395% compared to ~177% for all OECD countries, and ~113% for Euro area countries. During the same period real house prices here increased ~209% compared to ~62% for all OECD countries, and ~37% for Euro area countries. Housing affordability, measured by price-income ratio, has worsened ~98% over the period, compared to ~22% for all OECD countries, and ~21% for all Euro area countries. Further, the housing cost overburden rate here — the share of the population spending more than 40% of household income on housing costs — for households in the bottom quintile of income distribution is the second highest in the OECD for owners with a mortgage (~54%) and the third highest for private renters (~57%). Essentially the poorer you are here the more you pay for your housing. Housing policy mainly favouring greenfield and backyard subdivision to build low density houses has failed to produce improved, socially-diffuse, housing affordability. With over 40 years of urban and economic development experience in both Australia and New Zealand it wasn’t too difficult to connect the dots between neoliberal political agenda and unaffordable housing. Our politicians on the right (and the left) resemble zombies stuck on the road to nowhere — caught in the headlights of a neo-liberal theocracy and unable to move forward or even back to the time when our collective social conscience was alive and well.

What recent policy has ushered in is market instability, a boom in ‘for-profit’ residential investment property, rapid price and rent growth and expensive housing — especially for low income households. What is very clear is we’re never going to subdivide our way to better housing outcomes — only social inequality. Just as clear, based on research of approaches taken by countries achieving better market stability and improved and more socially-diffuse housing outcomes, is that we will need (more) proactively involved state and municipal sectors and a long-term policy agenda with pan-political buy-in. Any notion that the state should step back and leave it to the market to deliver more affordable and better quality housing is not supported by the evidence. Our almost exclusive reliance on for-profit market actors to deliver housing means that for approximately ⅓ of households traditional home ownership at market pricing is simply out of reach. These people are the ‘missing middle’ in our society. They earn too much to qualify for social housing and too little to get a loan from the bank and as such they’re stuck paying market rents as their only current option. Luckily there are alternatives. I’m passionate about the potential for a strategic housing policy modus vivendi focused on enabling the ‘third sector’ to achieve better and socially-diffuse outcomes. I’m directing my energy to learning about not-for-profit housing policy interventions and systems in exemplar European countries that have widened access to affordable good quality housing and how we can simulate those here in Australasia (or pretty well anywhere for that matter) to shape better future housing environments.