Greens propose four-point plan to address housing crisis

The Green Party has announced a four-point plan to solve the worsening housing crisis across New Zealand as Kiwis continue to struggle with finding a new home.

Green Party Finance spokesperson Julie Anne Genter said the government’s housing announcements need to meet the scale of the problem and determine what could properly address the instability of the housing crisis.

“Everyone has the right to a decent, affordable home, but house prices are out of control. Auckland’s median house price increased by $100,000 in February alone,” Genter said.

The Greens are calling for “bold, urgent interventions” in the housing market, including building thousands of additional homes and dampening down investor speculation.

They have proposed:

• Removing tax incentives for investors by removing the five-year cap for the bright-line test;
• Regulating investors’ access to mortgages – including ending interest-only mortgages, putting restrictions on debt-to-income (DTI) ratios, and requiring cash deposits for mortgages on investment properties;
• Direct economic stimulus from the government in the form of income support rather than relying on the Reserve Bank of New Zealand (RBNZ); and
• A massive urban redevelopment and home building program led by Kāinga Ora until housing supply matches demand and prices become affordable.

“We must use all the tools in the toolbox to stop the accelerating housing crisis in its tracks. Failure to do so will mean things only keep getting worse,” Genter said.

The Greens are urging the government to step up its building projects by supporting Kāinga Ora in acquiring and redeveloping land through increased debt limit and collaboration with community housing providers and iwi.

“Kāinga Ora should be aiming for at least 5,000 new builds every year until supply matches demand and prices stabilise at affordable levels. After that, it should be mandated to maintain a constant pipeline of housing development to match expected population increases,” Genter said.

“We must act boldly and quickly to address this crisis. The time to do something substantial to change the course we are on is now.”