Kiwibuild – a simple fix

The underlying problem Kiwibuild is trying to fix, is that houses simply cost too much because the land is too expensive, and we don’t have enough scale builders to build affordable housing.

The land cost issue is essentially regulatory and requires the Government to confront this reality and amend the relevant statutes including the RMA.   I don’t believe we need a Housing Urban Development Agency (HUDA), if a quality job is done the regulatory environment, and maybe better policies to handle the associated cost of providing the infrastructure.

If the Government wishes to continue with Kiwibuild, a simple fix would be to simply commission the houses in line with current policies, and then sell them at market prices to anyone who wants to live in them.   Many first time buyers don’t want a new house, they want one at a reasonable prices in an area that suits.

This approach would help develop the scale building industry and level off house prices.  However it ought to be phased out after say about seven years, leaving the market to take over.  It took 40 years of poor housing policies to create the current over priced sector.   A few years of quality Government action is required fix it.   But let’s not make it too complicated.

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s