Key Takeaways
- The National Party is working to address concerns about the housing market in Auckland, with a focus on increasing affordability and confidence for buyers.
- Most forecasters predict house prices will rise in the mid-single digits this year, but some politicians, including Christopher Bishop, support falling nominal house prices to improve affordability.
- The Government is planning to tweak directions to Auckland Council over Plan Change 120, which aims to zone for up to two million houses to be built in the city over the coming decades.
- National Party MPs, including Finance Minister Nicola Willis, Paul Goldsmith, and Simon Watts, are urging buyers to have confidence in the market, citing the country’s great prospects and the importance of having a stake in New Zealand.
Introduction to the Housing Market Concerns
The housing market in Auckland has been a topic of concern for many, with some worried about a further 10% drop in prices. When asked whether buyers should hold off on purchasing, Christopher Bishop, a National Party politician, declined to give advice, stating that people should consider their own circumstances and economic forecasts. This response reflects the complexity of the issue, as different factors can influence the housing market, and individuals must make informed decisions based on their unique situations.
Support for Falling Nominal House Prices
Bishop has been one of the few politicians to support falling nominal house prices, which is a departure from the traditional stance of both National and Labour politicians. Historically, these parties have supported rising nominal house prices, hoping to address affordability by increasing wages faster. However, Bishop’s approach acknowledges that falling house prices can improve affordability, making it easier for people to purchase homes. This perspective is significant, as it suggests a shift in the way politicians are thinking about the housing market and affordability.
Plan Change 120 and Intensification
The Government is planning to tweak directions to Auckland Council over Plan Change 120, which aims to zone for up to two million houses to be built in the city over the coming decades. This plan has been met with criticism from some National Party MPs, who are concerned about intensification in their areas. However, Bishop pushed back on this critique, saying that many National supporters like the party’s focus on housing and that the two million figure has become an unfair lightning rod for criticism. The plan change is intended to increase the supply of housing, which can help address affordability concerns and provide more options for buyers.
Confidence in the Market
Despite concerns about the housing market, several National Party MPs are urging buyers to have confidence. Finance Minister Nicola Willis said "yes, absolutely" when asked whether Aucklanders thinking of buying a house should have confidence. She highlighted the increase in first-home buyers under the current Government and the importance of having a stake in New Zealand. Paul Goldsmith, the MP for Epsom, also said buyers should "absolutely" have confidence, citing the strong economy and the core part that buying a home plays in creating a life for families. Simon Watts, the MP for North Shore, echoed this sentiment, saying that buyers should "absolutely" have confidence and highlighting the appetite for buying homes in his electorate.
Balancing Affordability and Confidence
The National Party is working to balance affordability and confidence in the housing market. Bishop’s plan to tweak Plan Change 120 aims to make it more politically sustainable, while also addressing concerns about intensification. Willis and other MPs are emphasizing the importance of having a stake in New Zealand and the great prospects the country offers. By increasing the supply of housing and addressing affordability concerns, the Government hopes to create a more confident and stable market. This balance is crucial, as it can help ensure that the housing market is accessible to a wide range of buyers, from first-home buyers to families and investors.
Conclusion
In conclusion, the National Party is taking a multifaceted approach to addressing concerns about the housing market in Auckland. By supporting falling nominal house prices, tweaking Plan Change 120, and urging buyers to have confidence, the party is working to create a more affordable and stable market. While there are still challenges to be addressed, the party’s efforts reflect a commitment to improving the housing market and providing more opportunities for buyers. As the market continues to evolve, it will be important to monitor the effectiveness of these efforts and make adjustments as needed to ensure that the housing market is working for all New Zealanders.