Global Housing

Arguably, the biggest accomplishment of the Albanese Labor Government has been delivering the worst rental and homelessness crisis in living memory. The Albanese government has lifted net overseas migration to an estimated record high 500,000, driven by surging temporary migration (mostly foreign students).

The latest Demographia housing affordability survey ranks New Zealand as having one of the most expensive housing markets in the world when median house prices are compared against median household incomes: This follows a decade of hyper house price growth across New Zealand.

One of the biggest accomplishments of Australia’s Albanese Labor Government has been the worst rental and homelessness crisis in living history.

Bloomberg has released a video report on YouTube claiming that “Australia’s housing crisis is a warning for the world” (video below): “Alarms are going off in Sydney, known as Australia’s bellwether property market.

Independent economist, Tarric Brooker, has published an interesting chart on Twitter showing how “the ramp up in migration has supported housing prices in Canada, New Zealand and Australia”: The chart uses the month Auckland, Sydney and Toronto house prices bottomed as the base or month 0.

Last month, Australian and the world’s media was captivated by research stating that ‘upzoning’ planning reforms introduced in Auckland in 2016 drastically improved housing affordability.

Independent economist Tony Alexander has written a note explaining why New Zealand housing affordability will never strongly improve, which applies equally to Australia.

The Reserve Bank of New Zealand has been one of the world’s most aggressive central banks, lifting the official cash rate an extraordinary 5.25% since October 2021.

Last week, Australia and the world’s media was smitten with a new report claiming that ‘upzoning’ planning reforms implemented in Auckland in 2016 dramatically improved housing affordability.

Goldman Sachs (via Shane Oliver on Twitter) has published the below chart tracking the house price busts across various developed nations: New Zealand leads the decline, with values down 17.6% from their November 2021 peak, led by Auckland (-22.8%) and Wellington (-25.6%): Interestingly, home values across various countries (i.e.

On Thursday, I reported that the Real Estate Institute of New Zealand (REINZ) House Price Index, which adjusts for differences in the mix of properties sold each month, fell by another 0.8% in April, and is now down 17.5% from its November 2021 peak.

The Reserve Bank of New Zealand’s ultra aggressive interest rate hikes continue to hammer the nation’s housing market. The Real Estate Institute of New Zealand (REINZ) registered just 4262 residential property transactions in April, a 15.3% decrease from the previous year.

The Reserve Bank of New Zealand’s aggressive interest rate hikes, which have led the developed world, continues to decimate the nation’s housing market.

The Reserve Bank of New Zealand’s aggressive interest rate hikes, which have lifted the official cash rate to 5.25%, have already knocked the stuffing out of the nation’s housing market.

It is becoming abundantly clear that the Reserve Bank of New Zealand’s ultra aggressive monetary tightening has crashed the nation’s housing market.

The housing crash is wrecking New Zealand’s real estate market, with overall commissions tanking 31% from the first quarter of last year and 47% from the first quarter of 2021.

The Reserve Bank of New Zealand has proposed to ease mortgage loan-to-value ratio (LVR) restrictions to improve efficiency and support the housing market.