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Commission calls for cheaper houses

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Commission calls for cheaper houses

3News NZ

Only five companies in New Zealand build more than 100 houses a year, while 4600 companies build one house a year (file pic)

Only five companies in New Zealand build more than 100 houses a year, while 4600 companies build one house a year (file pic)

The Productivity Commission is calling for lower-cost housing to relieve pressure on the property market in Auckland.

The commission released a report on housing affordability in April and its chairman Murray Sherwin told TVNZ's Q+A programme on Sunday that the houses being built in New Zealand were too expensive.

Only five companies in New Zealand build more than 100 houses a year, while 4600 companies build one house a year.

There were no economies of scale from large developments that could deliver lower-cost housing.

The commission, which was set up in 2011 to conduct research on productivity, has already called for an immediate release of new land for residential development in high-demand areas such as Auckland and Christchurch.

Mr Sherwin said he was hopeful of a "substantive response" from the government to the commission's report on housing affordability because the status quo could not continue.

"I think what we need in New Zealand now is a supply response. We need houses to be constructed to meet demand."

Councils needed to sit down with developers to come up with projects that provided lower-cost housing, he said.

Auckland had a shortage of 10,000 to 15,000 houses and new building was not at a fast enough rate for population growth.

"The cost of houses is too high. We can build them cheaper. We should be building them cheaper," Mr Sherwin said.

NZN

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Comments

16/07/2012 8:21:38 p.m.

David wrote:

Free up land for housing development around Auckland, which will relieve house prices. Prices are high because housing is comparatively scarce, it is the free market in action.

16/07/2012 10:28:55 a.m.

pondering wrote:

@ Barry Flewellen: You may be referring to the lost retro art of "modular homes". These structures that began descending on us in the 60s and 70s , where NZ was a keen testing ground and flight path for such craft. many examples where spotted about the place centreing on particular coastal areas. " Futuro " homes were once commonly seen by travelers down the east coast.

15/07/2012 5:08:00 p.m.

get out of Akl wrote:

The problem is that far too much economic activity is concentrated in Auckland. Govt needs to encourage businesses to set up/grow in regional centres. That would reduce the pressure on housing and help to inject fresh energy into towns that are currently struggling. There are plenty of houses for sale at affordable prices around NZ - there just need to be the jobs available to encourage people to move/stay there.

15/07/2012 3:21:44 p.m.

morry wrote:

why don,t Aucklanders cash up and move to beautiful small towns in the quiet south Island like Geraldine, they can sell up and have thousands in the bank.

15/07/2012 1:04:40 p.m.

Barry Flewellen wrote:

Homes can be made productively and economical. Bathrooms. kitchens, should all be made completely in a factory. All the other rooms in a similar manner. Outside cladding is done in the factory. Yes no bricks. Internal walls will be slightly thinner than normal, however when mated with the other wall you have a thicker wall and better sound proofing. All electrical wiring is run on the outside of the walll at skirting level in a well designed containment. Roof prebuilt in factory erected in sections after rooms are placed. There is plenty of scope with creating individual looks to the homes. Orientation and the lie of the land creates that. This idea is already out there. Just look at what people are doing with containers.