Key Takeaways:
- Housing Minister Chris Bishop encourages tenants to negotiate for lower rent as prices drop
- The government is working to deliver 1500 new houses by June 2027, but faces challenges with consenting and construction
- Bishop emphasizes the importance of public housing and supporting vulnerable groups, including prisoners and youth
- The government is exploring partnerships with community housing providers, iwi, and Māori land trusts to deliver housing support
- Youth homelessness remains a significant issue, with a lack of transitional housing in many areas
Introduction to the Housing Crisis
The New Zealand housing market is experiencing a significant shift, with rental prices dropping to their lowest level in two years. This change has prompted Housing Minister Chris Bishop to encourage tenants to negotiate for lower rent. Speaking after a Select Committee on housing, Bishop emphasized the importance of tenants taking advantage of the current market conditions. He noted that the power has shifted from landlords to tenants, and renters should use this opportunity to negotiate for better deals. Bishop shared an example of a tenant who successfully negotiated a rent reduction from $650 to $600 per week after discovering that similar apartments in the same building were being advertised for $600.
The Government’s Housing Goals
Earlier in the Select Committee, Bishop was questioned about the government’s progress in meeting its promise to build 1500 new houses by June 2027. Bishop confirmed that the government is on track to meet this goal, but acknowledged that there may be some delays due to consenting and construction issues. He noted that Kāinga Ora, the government’s housing agency, is working to address these challenges and deliver the promised houses. However, Labour’s Kieran McAnulty presented an aide memoire that showed officials had warned the Minister about risks to the delivery timeframe, and that the current projections do not add up to the promised number of houses. Bishop acknowledged the risks, but emphasized that the government is working hard to deliver the houses and will hold people accountable for any delays.
Supporting Vulnerable Groups
Bishop also discussed the government’s approach to public housing and supporting vulnerable groups, including prisoners and youth. He emphasized that the government has a responsibility to provide support to those who need it, and that this support can take many forms. Bishop noted that the government can work with community housing providers, iwi, and Māori land trusts to deliver housing support, rather than relying solely on state-provided housing. He also expressed his interest in supporting newly-released prisoners, who often struggle to find housing and may end up back in the prison system. Bishop noted that providing housing support to this group can be a cost-effective way to reduce recidivism and improve outcomes.
Addressing Youth Homelessness
Associate Housing Minister Tama Potaka was also questioned about youth homelessness, particularly in light of a recent report that found rough sleeping was getting worse. Potaka acknowledged the severity of the issue and noted that the government is funding placements for homeless young people. However, she also emphasized that challenges remain, including a lack of transitional housing in many areas. Potaka pointed to the government’s recent announcements, which included funding for transitional housing in Tāmaki Makaurau, but acknowledged that more work needs to be done to address the issue. The government is committed to working with community providers and other stakeholders to deliver housing support to vulnerable youth and address the root causes of homelessness.
Conclusion
In conclusion, the New Zealand housing market is undergoing a significant shift, with rental prices dropping and the power shifting from landlords to tenants. The government is working to deliver new houses and support vulnerable groups, including prisoners and youth. While challenges remain, the government is committed to addressing the housing crisis and providing support to those who need it. By working together with community providers and other stakeholders, the government hopes to deliver better outcomes for all New Zealanders and address the complex issues surrounding housing and homelessness. As Bishop noted, the government’s goal is to provide effective support to those who need it, while also promoting affordable and sustainable housing solutions for all.
