New Zealand Economy

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New Zealand’s housing shortage continues to grow

By Leith van Onselen New Zealand’s chronic housing shortage continues to worsen, especially in Auckland, as dwelling consents fail miserably to keep pace with turbo-charged population growth. There were 12,845 dwelling consents issued across Auckland in the year to June (up 28%), and 32,850 consents issued across New Zealand over the year (up 8.0%): However,

3

NZ mortage growth rebounds as investors stir

By Leith van Onselen The RBNZ’s latest mortgage data shows that household and mortgage credit growth has begun to rise again after cooling recently in response to loan-to-value ratio restrictions targeting investors. After bottoming in February at 5.7%, annual New Zealand household credit growth rose to 5.8% in July: Most of New Zealand’s household debt

3

Auckland’s housing shortage an intractable mess

By Leith van Onselen Month after month MB has documented the worsening housing shortage in Auckland, where massive immigration-fuelled population growth continually overruns the supply of new dwellings. Yesterday, Auckland Council’s chief economist, David Norman, noted that even if the number of homes built in Auckland were magically increased by 20% and population growth was dropped by 25%,

2

Auckland house prices join the deflation

By Leith van Onselen The REINZ has released its house price data for July, which revealed a 0.2% seasonally adjusted monthly rise in the national median house price, with prices also up 6.6% year-on-year: Outside of Auckland, seasonally adjusted house prices rose by 0.2% in July, with prices up 8.6% year-on-year. Looking at the major

5

NZ’s population surges towards 5 million

By Leith van Onselen Statistics New Zealand has released it’s June quarter population estimates, which shows that New Zealand’s population is fast approaching 5 million people, increasing by 92,000 (1.9%) over the past year to 4.89 million: As usual, this growth has been driven by mass immigration, which added 65,000 in the year to June:

20

NZ Labour to ban foreign home buyers

By Leith van Onselen Later this week, New Zealand’s Labour-led coalition Government will introduce legislation to implement the first tranche of its demand-side housing reforms, amending the Overseas Investment Act to preclude foreign buyers from purchasing residential property. From The Canberra Times: Ms Ardern’s Labour Party is adamant that a law change banning foreigners from buying

10

RBNZ goes dovish as Kiwi plummets

by Chris Becker The Reserve Bank of New Zealand (RBNZ) held its monthly interest rate meeting this morning, holding rates again at 1.75%, but substantively changed the language around their key policy guidance. From the source: The Official Cash Rate (OCR) remains at 1.75 percent. We expect to keep the OCR at this level through

3

NZ unemployment rate rises to 4.5%

By Leith van Onselen Statistics New Zealand has released its labour force data for the June quarter, with the unemployment rate rising by 0.1% to 4.5%. Below are the key points from the release: Unemployment rate rose to 4.5 percent. Underutilisation rate rose to 12.0 percent. Employment rate was unchanged at 67.7 percent. Filled jobs

3

Rat-wheel economy drives massive NZ infrastructure deficit

By Leith van Onselen In August last year, Bernard Doyle, a strategist at JBWere, penned a ripping report on the New Zealand economy, arguing that rabid population growth was masking underlying weak productivity and poor per capita GDP growth: New Zealand has been in a productivity recession since 2012. Not that you’d notice from headline GDP

5

NZ Labour falls deeper into housing abyss

By Leith van Onselen New Zealand’s chronic housing shortage continues to worsen, especially in Auckland, despite dwelling consents rising to 15-year highs and immigration falling. There were 12,369 dwelling consents issued across Auckland in the year to June (up 19%), and 32,860 consents issued across New Zealand over the year (up 7.9%): However, despite the

10

ANZ: High house prices, immigration, a ‘productivity killer’

By Leith van Onselen ANZ’s latest Property Focus claims that claims that unaffordable housing and excessive immigration is killing productivity in New Zealand. From Interest.co.nz: “High house prices make it more difficult for younger households to invest in businesses, limiting the entrepreneurial endeavours of younger people. They also create barriers to labour mobility and social

12

Auckland house prices rebounded in June

By Leith van Onselen The REINZ has released its house price data for June, which revealed a 0.9% seasonally adjusted monthly rise in the national median house price, with prices also up 5.2% year-on-year: Outside of Auckland, seasonally adjusted house prices rose by 1.3% in June, with prices up 6.6% year-on-year. Looking at the major

13

Ardern’s Kiwibuild turns from social housing to “socialism for the rich”

By Leith van Onselen I noted on Monday how the New Zealand Labour Party’s promise to “build 100,000 affordable homes across the country” was already shaping up as an epic failure due to: the government changing the program from “building” to “facilitating” the delivery of 100,000 affordable dwellings, meaning that NZ taxpayers would merely ‘underwrite’ many dwellings that would

9

Ardern’s Kiwibuild program descends further into farce

By Leith van Onselen I noted on Monday how the New Zealand Labour Party’s promise to “build 100,000 affordable homes across the country” was already shaping up as an epic failure due to: the government changing the program from “building” to “facilitating” the delivery of 100,000 affordable dwellings, meaning that NZ taxpayers would merely ‘underwrite’ many dwellings that would

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Ardern’s ‘Kiwibuild’ affordable housing policy already an epic fail

By Leith van Onselen As part of its election platform, the New Zealand Labour Party promised to “build 100,000 affordable homes across the country”: Labour’s KiwiBuild programme will build 100,000 high quality, affordable homes over 10 years, with 50% of them in Auckland. Standalone houses in Auckland will cost $500,000 to $600,000, with apartments and townhouses under $500,000.

9

NZ Labour falls further into housing abyss

By Leith van Onselen New Zealand’s chronic housing shortage continues to worsen, especially in Auckland, despite dwelling consents rising to 15-year highs and immigration falling. There were 12,274 dwelling consents issued across Auckland in the year to May (up 18%), and 32,628 consents issued across New Zealand over the year (up 6.5%):   However, despite

23

NZ Labour sinks into immigration lies

By Leith van Onselen In the lead-up to last year’s September general election, New Zealand Labour Party launched a plan to reduce immigration by around a third in a bid to relieve chronic housing and infrastructure pressures (especially around Auckland): Last weekend, the Labour-led Government announced that it would triple the amount of time that

21

Politicians only care about housing in opposition

By Leith van Onselen Back in 2007, then National opposition leader, John Key, lamented the woeful housing affordability in New Zealand (Auckland in particular), and promised to undertake a wide range of supply-side reforms if elected into government. John Key was elected as Prime Minister in November 2008 and the National Government ruled until September

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Liar Jacinda Ardern opens immigration flood gates

By Leith van Onselen In the lead-up to last year’s September general election, I praised New Zealand Labour’s plan to reduce immigration by around a third, because it would help to relieve chronic housing and infrastructure pressures (especially around Auckland): Back in March, we experienced the first hint of backsliding from Labour, with Immigration Minister, Ian

9

RBNZ Governor backs sub-prime lending

By Leith van Onselen The new governor of the Reserve Bank of New Zealand (RBNZ), Adrian Orr, gave a bizarre interview on Newshub Nation over the weekend, whereby he simultaneously fretted over New Zealand’s excessive household debt while at the same time argued against loan-to-value ratio (LVR) limits for low income ‘Kiwi build’ borrowers. First, below

3

NZ mortage growth rebounds as investors stir

By Leith van Onselen The RBNZ’s latest mortgage data shows that household and mortgage credit growth has begun to rise again after cooling recently in response to loan-to-value ratio restrictions targeting investors. After bottoming in February at 5.7%, annual New Zealand household credit growth rose to 5.8% in April: Most of New Zealand’s household debt

5

Despite immigration fall, NZ housing shortage worsens

By Leith van Onselen New Zealand’s chronic housing shortage continues to worsen, especially in Auckland, despite dwelling consents rising and immigration falling. There were 11,629 dwelling consents issued across Auckland in the year to April (up 14%), and 32,015 consents issued across New Zealand over the year (up 5.4%): Despite the pick-up, none of this