It’s better to buy the worst house in the best street than the best house in the worst street.
That’s the real estate rule summed up as location, location, location and it’s one reason that the affordability of housing depends not just on the house but where it is.
The Productivity Commission’s report on housing affordability found that land prices had increased faster than house prices over the last 20 years. That suggests a shortage of land where people want to live.
One solution to that is to free up more land for residential development.
The Greens are opposed to this because it means generally means people have to travel further. I think it’s a pity that productive land is taken over for housing.
There is another solution and that’s for people to live where land is cheaper.
Sections in smaller towns is usually much cheaper than it is in bigger cities.
A few years ago the Waitaki District Council decided to use that to entice people from Auckland to move to Oamaru. Some did and found they could buy a much better house than the one they ‘d sold with a good deal of money left over.
Life in a small town doesn’t suit everyone but people prepared to be flexible about location will find housing is more affordable than those who want to live in the best streets.