Late last year, Interest.co.nz published an alarming report showing how the Auckland region’s undersupply of homes has blown-out by nearly 400% in just four years – from 6944 in 2014 to 34,150 in 2018 – on the back of an insane 134,000 increase in population from net overseas migration:
On Friday, Statistics New Zealand released data showing that Auckland dwelling consents fell 2% to 12,800 in the year to November, but were still up 19% year-on-year and near the highest level since the 1970s:
The crazy thing is that despite Auckland’s dwelling construction running at close to the highest level in around 40-years, it is nowhere near enough to keep pace with the region’s hyper immigration-driven population increase.
Even if we heroically assume that the 12,800 dwelling consents translates into a commensurate increase in supply – an unrealistic assumption given it doesn’t account for demolitions – Auckland would still build only one new dwelling for every three new people.
The only way to solve Auckland’s chronic housing shortage is to slash immigration. Otherwise, the city’s housing shortage will continue to worsen.