New Zealand Property Market
This piece was written as part of the course LAWGENRL 438: Housing Law and Policy at the University of Auckland.
Question: What legal and economic factors have contributed to the Auckland Housing Crisis, why is it concerning, and what legal mechanisms (policy) can be adopted to address it?
Auckland’s median house price rose 18% in 2014, and less than a third of Aucklanders now own their homes. The 2015 Demographia International Housing Affordability Survey ranks Auckland as ‘severely unaffordable’, the seventh most unaffordable housing market in the developed world. Both the Reserve Bank and the Treasury indicate that the housing situation in Auckland is a ‘bubble’, ‘unsustainable’ and a threat to New Zealand’s economic recovery. Qualitative data also show that young New Zealanders are expressing anxiety about their ability to own a home. Housing affordability in Auckland has become a significant social and economic problem (“Auckland housing crisis”).
This main issue in this legal opinion is what legal mechanisms can be implemented to address the Auckland housing crisis?
The analysis will be divided into three parts:
The first sub-issue sets out the context, why is housing affordability in Auckland a crisis and does the government have a moral or legal duty to intervene?
The second sub-issue looks at what legal and economic factors have contributed to the crisis and the effectiveness of existing policies and legal mechanisms,
The third sub-issue is forward looking by looking at how a capital gains tax can be effectively implemented by the government.
This opinion will analyse a combination of laws, policy documents and economic indicators.
This entry was posted in Economic Development, New Zealand Politics, Social Development and tagged Auckland Council, Auckland Housing Crisis, Capital Gains Tax, Chinese Investors, Immigration, New Zealand Property Market, Speculation, Supply and Demand.