New Zealand’s waitlist for public housing has continued to grow at a rapid pace. Reaching nearly 14,500 households in November 2019, the list has more than doubled since 2017. The greatest demand is in Auckland, with 5326 individuals or families registered on the waitlist.
The East Coast, Bay of Plenty, Wellington, Canterbury and Waikato also each have more than 1,000 households waiting for public housing, putting the pressure on the government’s housing programmes. Hon Kris Faafoi, Associate Housing Minister (public housing), has said every New Zealander has a “right to a warm, dry, secure and safe place to live” - a sentiment which we strongly echo at Quinovic.
Also hitting a new high is the number of consents issued for new builds in the year to November 2019. In the Wellington region alone, there were 3036 new homes consented, a number not surpassed since the mid-1970s.
Similarly, Auckland, Waikato and Canterbury saw significant increases in the number of consents issued. The record number of consents has resulted in a national growth of 13% compared to the year prior, leading Fletcher Building to open a house-building factory in Auckland.
What does this mean for property investors? Stats NZ believes that the higher demand for housing, along with the Government’s Healthy Home Standards, are the driving factors behind a record-breaking quarter for rent increases. The three months to December 2019 showed the largest annual rent increase in 11 years, a climb of 0.8%. Exceeding the expectations of the Reserve Bank of New Zealand, rents rose 3.1% year-on-year.
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