• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Results 1 to 5 of 5
  1. #1
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,915

    Default Even high earners face a lifetime of renting, says report

    Even high earners face a lifetime of renting, says report
    5:00AM Tuesday April 24, 2007
    By Anne Gibson

    Aucklanders earning large five-figure incomes are faced with a lifetime of renting, locked out of home ownership by rising house prices.

    Home ownership levels are falling, middle-income families cannot afford to buy and the city will need at least another 56,000 houses and flats in the next decade to meet the demand from those shut out of the property market.

    So says a report from property consultants DTZ and others which predicts just 58.3 per cent of Aucklanders will own a house by 2016, down from 72 per cent in 1991.

    The report found young families and the elderly would be hardest hit, being increasingly likely to rent and squeezed by relatively low incomes and high house prices.

    The report, written by a team led by Ian Mitchell of Wellington, was released by the Centre for Housing Research and found even high-earning households getting $50,000 to $70,000 annually were suffering housing stress, paying more than 30 per cent of their gross income on housing costs.

    It found the number of households unable to afford even a place in the cheapest quarter of the housing stock had risen from 20,400 in 1996 to 54,900 last year, a 169 per cent increase.

    "Renters have become a more diverse group, incorporating more households with children and older renters who will increasingly out-compete single-parent and single-person households that have traditionally relied on the private rental sector.

    "There is growing evidence of renting becoming a lifestyle choice for households that cannot afford to buy in suburbs of their choice," the report said.

    "The fall in ownership rates combined with underlying population growth suggests an additional 5600 rental units will be required every year for the next 10 years in the Auckland region.

    "The necessary investment required in the private rental market is likely to be forthcoming under conditions of strong price growth, but investment might slow in conditions of moderate or low growth in house prices."

    The likely scenario was for moderate house price growth of 5 to 8 per cent a year. Access to home ownership would remain problematic under conditions of population growth and medium to high capital value growth.

    "Given the limited capacity of housing policy to influence house price cycles," it said, "and the ability of Government programmes to mitigate some of the affordability problems faced by target groups, the authors support a supply side focus for housing policy over the medium to long term."

    The problem
    * Fewer Aucklanders can afford to buy a home.
    * They are squeezed by high house prices and low wages.
    * The number of people renting is rising rapidly.

    Possible solutions
    * Provide 56,000 new houses and flats in the next 10 years.
    * Allow more new house and flat developments.
    * Introduce a Government shared-equity scheme.

    http://www.nzherald.co.nz/section/1/...ectid=10435816
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  2. #2
    Join Date
    Apr 2006
    Posts
    4,018

    Default

    These articles you are posting are great Muppet.

    Adds to the "one stop shop" feature of PT.

    Many thanks for your efforts,

    Paul.

  3. #3
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    Or we could start dealing with the real issues.
    1. Ridiculous council costs for developers
    2. Government doing nothing about our low wage rates
    3. No financial education in schools
    4. No decent tax structures to help people get into their own homes.
    Etc. etc. etc.

  4. #4
    Join Date
    Jun 2004
    Location
    Kapiti
    Posts
    621

    Default

    How about changing housing density zonings. Like in U.K rows of terraced housing.

  5. #5
    Join Date
    Jan 2005
    Location
    Turkey/NZ
    Posts
    1,821

    Default Careful what you wish for

    Quote Originally Posted by Hound View Post
    How about changing housing density zonings. Like in U.K rows of terraced housing.
    How about we start with Kapiti?

    G


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. ACC Earners Levy Skyrockets
    By PC in forum General (NZ)
    Replies: 24
    Last Post: 31-10-2014, 10:18 AM
  2. Housing report: Numbers renting jump
    By jenny_pt in forum Videos
    Replies: 2
    Last Post: 16-04-2010, 08:37 PM
  3. Low and medium-high income earners priced out of property market
    By jenny_pt in forum Property Investment (Oz)
    Replies: 0
    Last Post: 15-09-2009, 12:01 PM
  4. Low and medium-high income earners priced out of property market
    By Viking in forum Property Investment (NZ)
    Replies: 0
    Last Post: 14-09-2009, 10:22 PM
  5. Queenslanders face up to future of high-density housing
    By muppet in forum Property Investment (Oz)
    Replies: 0
    Last Post: 28-07-2009, 05:49 PM
  6. Replies: 23
    Last Post: 30-05-2009, 01:21 PM
  7. Rogue estate agents get lifetime ban for fraud
    By Marc in forum Regions News (NZ)
    Replies: 3
    Last Post: 30-12-2008, 09:55 PM
  8. Developer and foes go face to face
    By muppet in forum General (NZ)
    Replies: 3
    Last Post: 23-01-2008, 11:23 AM
  9. Your Views: Are you facing a lifetime of renting?
    By muppet in forum General (NZ)
    Replies: 1
    Last Post: 24-04-2007, 09:08 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •