Twyford: It’s going to be tough to meet Kiwibuild target

Jan 24, 2019 | News

This week a report found New Zealand is one of the most unaffordable countries in the world to buy a house, with the average price more than six times the median household income.

More than six months into KiwiBuild, only 33 homes have been built – well short of the 1000 target for its first year of operation.

Mr Twyford told Morning Report it had been tougher to get the number of houses built than was expected.

“I can’t guarantee that [1000 built by July this year]. I think it’s going to be tough to meet that target.”

“We’re working flat out to meet that target. I’m not going to give you a prediction right now. We’re not setting a new target.”

“The market hasn’t been delivering to first-time buyers” – Phil Twyford duration 11′:59″
from Morning Report

In the early couple of years in the KiwiBuild programme the intention was to incentivise developers to build affordable, modest homes and promote buying off the plans, he said.

“The market hasn’t been delivering to first-time buyers,” Mr Twyford said.

“It’s a matter of incentivising developers to move off the existing business model they have which is to get the maximum return on capital by building fewer but more expensive homes … we’re trying to get them to change that business model,” he said.

“Currently fewer than 5 percent of the new builds are in that bottom 25 percent of the price range – that’s where first time buyers traditionally buy.”

According to the Demographia International Housing Affordability report, anything more than three times household salary is deemed unaffordable and homes more than five times median annual household income is considered severely unaffordable.

Palmerston North-Manawatu was the least expensive at 5.0, then Christchurch at 5.4, Dunedin at 6.1, Wellington at 6.3, Napier-Hastings at 6.7, Hamilton-Waikato at 6.8, then Auckland at 9.0, followed by Tauranga and the Western Bay of Plenty as the most unaffordable at 9.1.

Auckland was the seventh most unaffordable major city in the world, behind Hong Kong, Vancouver, Sydney, Melbourne, San Jose and Los Angeles.

However, Mr Twyford said if “you’ve got a household income of $100,000, you can afford to buy a home of $650,000”.

“That’s a deposit of $35,000 approximately. You can get $20,000 of that through the government’s homestart subsidy.

“We’re focused on building more affordable houses.”

National Party leader Simon Bridges said the main driver of house prices was the lack of land for new homes.

“We’ve artificially constrained land,” he said.

“Were the government today to come up with a comprehensive RMA [Resource Management Act] reform on both planning and the environment, we would be collaborative on that.”

As for the current government’s KiwiBuild policy, Mr Bridges said it had not worked.

“We’re a year and a bit in, we’ve had 40 homes. The government said they’d do a 100,000, they’re not going to meet that. I don’t hold out hopes for KiwiBuild.”

Recent articles

Community Housing Aotearoa (CHA) Newsletter 22 August 2022

Community Housing Aotearoa (CHA) Newsletter 22 August 2022

Welcome new CHA team members, Newsroom opinion piece: Unlocking home ownership, Podcast out now, Our Conference is coming back, CHA Comms lead wins journalism award, Tenancy Management Code of Practice, Research Webinar, Sustaining tenancies or swift evictions? Job...

Community Housing Aotearoa (CHA) Newsletter 8 August 2022

Community Housing Aotearoa (CHA) Newsletter 8 August 2022

Development Pipeline Platform, Climate Change policy, MBIE and MHUD Building for Climate Change program, Powerful Partners (International delegation visit) Power Housing Australia, Right at Home episode two: Progressive Home Ownership, Council collaboration paves way...

Annual Report

CHA’s 2020/21 Annual Report

CHA’s 2020/21 Annual Report

Strategic Plan

CHA’s 2022-2023 Strategic Workplan

CHA’s 2022-2023 Strategic Workplan

Featured Network

Residential Tenancies Act Community of Practice

Residential Tenancies Act Community of Practice

Our Place

Our Place Report 2017

Our Place Report 2017

Case Studies

Media Releases

News

How community housing can mend our fraying fabric

NZ's social housing register has quadrupled in size since 2017 and big changes to mindsets over house building and housing affordability are needed, writes Community Housing Aotearoa chief executive Vic Crockford in The Newsroom. Click here to read more. 

Anti-Social Behaviour notes Nov 21

Tenants Protection Association (Chch) Inc. Notes for presentation at Tenancy Management Community of Practice Nov 2021 Anti-Social Behaviour notes Nov 21

Newsletters

Community Housing Aotearoa (CHA) Newsletter 22 August 2022

Welcome new CHA team members, Newsroom opinion piece: Unlocking home ownership, Podcast out now, Our Conference is coming back, CHA Comms lead wins journalism award, Tenancy Management Code of Practice, Research Webinar, Sustaining tenancies or swift evictions? Job...

Community Housing Aotearoa (CHA) Newsletter 8 August 2022

Development Pipeline Platform, Climate Change policy, MBIE and MHUD Building for Climate Change program, Powerful Partners (International delegation visit) Power Housing Australia, Right at Home episode two: Progressive Home Ownership, Council collaboration paves way...

Community Housing Aotearoa (CHA) Newsletter 25 July 2022

We pay tribute to Ricky Houghton's lifetime work legacy, a great  well respected leader a huge loss for our sector and Tai Tokerau community, Acknowledgement and farewell to Bernie Smith another strong leader and advocate all the best on your new journey,...

Community Housing Aotearoa newsletter 11 July 2022

Our CEO Vic Crockford reflects on matariki and the current situation with Covid. Our new Community Housing Aotearoa podcast is out - with the first episode featuring interviews with Dwell Housing Trust and CORT's respective chief executives and Penina Housing Trust...

Community Housing Aotearoa newsletter 27 June 2022

Our CEO Vic Crockford reflects on our past, while looking forward, Dwell Housing Trust's board is recognised for their sterling efforts, new research highlights NZ's ongoing housing challenges. Upcoming events include; the Community Housing Aotearoa MSD Training...

Submissions

Legislation

Reports

Research

Community Housing Aotearoa

Contact Us

Contact Info

Level 11, Ranchhod Tower,
39 The Terrace /
102-112 Lambton Quay
PO Box 11543
Wellington 6142

+04 385 8722

support@communityhousing.org.nz

Follow On