You've hit the nail on the head. Construction costs have virtually doubled in the last several years. Subdivision costs, council fees and levies are rising exponentially. Building standards and regulations are tightening. Wages across all sectors are on the up. Rules on subdivisions are getting more stringent. Resource consents and objectors are getting carried away. Councils generally don't want to encourage urban sprawl and don't want to invest in new infrastructure. People per household is on the decrease (more single occupancy households), and people still need a roof over their head. Bearing all this in mind it's hard to see how prices are actually going to decrease.
A house costs a certain amount to build, and everything the govt does or introduces only adds to that amount. Their only solution to the "high prices" is to introduce measures to increase and strengthen demand. Affordable housing or cheaper housing is an illusion. Nobody is going to build a house and sell it for less than it cost.
Although having said all that, I am picking there to be a flattening period now...
Will there be a housing shortage (and boom) in 5 years time, who knows? But there are strong arguments for it.
Myself, I feel I can safely say that in 5 years time prices will definitely be a lot higher than they are now.
A house costs a certain amount to build, and everything the govt does or introduces only adds to that amount. Their only solution to the "high prices" is to introduce measures to increase and strengthen demand. Affordable housing or cheaper housing is an illusion. Nobody is going to build a house and sell it for less than it cost.
Although having said all that, I am picking there to be a flattening period now...
Will there be a housing shortage (and boom) in 5 years time, who knows? But there are strong arguments for it.
Myself, I feel I can safely say that in 5 years time prices will definitely be a lot higher than they are now.
Originally posted by alhoon
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