Housing market dubbed a “sticky hot mess”
The Opportunities Party (TOP) leader Geoff Simmons is calling for a major rethink on skyrocketing house prices as the housing market remains a “sticky hot mess.”
Simmons noted a faster increase in house prices and rents than incomes for the past 30 years, which proves that Kiwis' incomes are tied up in housing. As a result, he has urged the industry to stabilise the skyrocketing house prices the same way the government flattened the COVID-19 rates in the country.
“We need to keep house prices and rents stable for another generation, 30 years, so that incomes have a chance to rise and catch up. Germany has achieved it and, in case you didn't notice, Germany has a pretty strong economy,” Simmons said, as reported by Stuff.
Read more: House prices continue to rise post lockdown
TOP suggested increasing property taxes while reducing taxes on business and investments, including KiwiSaver. It also suggested initiatives to support small businesses, universal basic income, and environmentally friendly economic recovery.
“Our key politicians know about these big issues but, of course, career politicians, the incentive is to talk about change but not actually deliver on it because there's a desire not to ruffle anyone's feathers,” Simmons said.
“I think that's why we've seen 30 years of tinkering around the edges from both Labour and National.”
