There’s no let-up in sight for housing affordability and availability, particularly in Auckland, says BNZ chief economist Tony Alexander.
He says there are signs it will deteriorate further – Auckland Council says 13,000 building consents are needed a year to keep up with demand and the city is sitting at an annual level of just 4722.
Rising construction costs, an ageing population, migration increasing, a lack of builders and strong demand from investors are keeping supply tight, he says.
He said there were now four years’ worth of first-home buyers entering the market who had held back out of fears that prices would drop, they might lose their jobs or would have difficulty getting loans.
Investors were in the market because the returns from banks were so low.
“The situation is going to get worse.”