Media Release
9 October 2006
Bottom Rung Getting Higher
New Zealand First is urging the Government to consider all options in addressing the housing affordability crisis, which
is only getting worse and which requires urgent and creative action.
“Home ownership has always been a central component of the New Zealand psyche and lifestyle, and remains a goal for most
New Zealanders,” said Housing spokesperson Pita Paraone.
“However, successive reports and studies have been telling us for years now that affordability levels are falling
dramatically. Many people will simply be unable to gain entry to the housing market, which will have economic and social
implications in the long term.
“The latest Massey report reveals that despite a slowdown in the growth of house prices in the three months to September
30, affordability again declined during the same period.
House prices are now seven to eight times the average income, compared to three times the average income twenty or so
years ago.
“There are a lot of factors contributing to this state of affairs, including immigration, investors buying multiple
properties, banking policies and our low wage economy.
“This means that a multi-stranded solution will be necessary to address what is surely reaching crisis levels in
anybody’s language.
”I call on the Government to approach this problem with the urgency it requires, so that those currently missing out on
the Kiwi dream can have the opportunities their parents did,” said Mr Paraone.
ENDS