New Zealand needs more houses, but despite the simplicity of that goal it’s been impossible to keep up with the demand. This problem has persisted through both National and Labour Governments.
As much as we might juggle LVR restrictions and interest rates, the problem is with supply and how we think about it.
To take the pressure off the housing and rental markets, our local and central governments including us as citizens of our country will need to make big changes. We need to work together to build more houses, and I don’t mean physically! But in order for this to happen we need to stop short-term-thinking and old ways of thinking about home ownership. This is holding us back and creating unnecessary problems in what should be the best country to live in.
Every time we hear about the government “borrowing” we get comments about them “mortgaging our future” and “debts that will cripple future generations”. But our reluctance to acknowledge that our national debt will need to increase in order for this to happen is holding us back. The investment we make in the housing market will increase the health and well-being of huge numbers of New Zealanders. If we invest in affordable living, New Zealanders won’t need to spend their time worrying about where they’re going to live. Instead they can think about having a family, starting a business or working towards a promotion at work. All these things improve our productivity which then increases the wealth of our society.
Most of us are focused on our own immediate goals; deadlines, bills to pay and to-do lists. Thinking about national productivity or future standards of living and infrastructure are, not really boring, but not our job! We should be focused on us and our families and your business, if you have one. But this thinking also extends to the construction industry and others that support it. But without working together, we’re not going to get anywhere.
We need faster and more cost effective building techniques. That means using a full range of prefabricated types to their fullest capacity. This would mean we could build houses in factories, in any weather, then assemble on site.
We’re not talking about the old type post-war prefab house and school classrooms. The modern equivalents are better and outperform our existing homes for warmth, comfort and ease of construction. Plus they are more cost effective.
A large number of us own houses already and enjoy that they keep increasing in value, but some of us are guilty of the “not in my back yard” sentiment when it comes to change in our suburbs.
Our lack of houses is a national problem that’s stifling our productivity and leaving younger New Zealanders and first home owners, feeling helpless. Solving the housing crisis depends on us working together, on some wealth distribution, and on a shift in mind-set. We need government, both central and local, and our businesses to work together. They need support in funding to build faster and cheaper homes and to make New Zealand a better place to live for everybody, not just those who’ve already made it onto the ladder.
This last year has demonstrated that we can pull together to protect and support each other. Let’s keep doing that.
JOHNSTON ASSOCIATES, 202 Ponsonby Road, T: 09 361 6701, www.jacal.co.nz
Disclaimer – While all care has been taken, Johnston Associates Chartered Accountants Ltd and its staff accept no liability for the content of this article; always see your professional advisor before taking any action that you are unsure about.
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