Land affordability

Housing affordability is one of the causes de jour but asking prices across the country   shows the problem isn’t the price of houses.

The highest prices were in Auckland ($588,088) and Central Otago/Lakes ($515,859).

The lowest prices were in Southland ($264,028) and on  the West Coast ($277,538).

The difference isn’t in the price of the houses but the cost of the land they sit on which is a function of supply and demand.

The problem of affordability will be solved by people choosing to live in places where the demand for land is lower; by building houses which take up less land or in freeing up more land for development to increase the supply.

4 Responses to Land affordability

  1. Andrei says:

    The problem of affordability will be solved by people choosing to live in places where the demand for land is lower;

    Lol – people who can afford houses live in places where there are opportunities for them to earn their daily bread,

    All in all New Zealanders generally do pretty well inthe abode department tho – not too many warehoused in concrete towers and not too many dwelling under motorway bridges

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  2. or in freeing up more land for development to increase the supply.

    You do realize this in effect forces more farmers off their land as a result when you have oversized bureaucratic supercitys like Auckland Council imposing feudal style land taxes aka rates on farmers across an extremely diverse range of properties?

    The solution is far more complex than releasing more land.

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  3. Richard says:

    Andre- I agree. My little hamlet is 25 mins drive from Dunedin. Many commute from here to the city because the house prices are relatively- unless you have sea view – compared to the city. However many are selling and moving to the city because of the dally cost of travel. Economics is the driver.
    “The problem of affordability will be solved by people choosing to live in places where the demand for land is lower; ” Yes, but only where there are jobs
    Housing could cheaper if we built up – referring to a subject on this blog a few days ago – with better design?

    It is with sadness that I report the possible demise of a favourite building design of mine the nissen hut.

    http://www.dailymail.co.uk/news/article-2257101/Three-bedroom-WWII-Nissen-hut-home-wartime-land-girls-56-years-emerges-sale.html

    These two ladies lived long and happy lives- have convinced myself that their abode was, in part, responsible for their long lives.

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  4. Freddy says:

    HP.. your comment seems to be at odds with what Conor English has been banging in about….I’m on Conors side on this issue!!
    http://www.fedfarm.org.nz/publications/opinion-editorials/article.asp?id=464

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