Kiwi’s have been hopeful for a building boom to resolve our housing crisis. Sadly according to a top financial crystal ball gazer there will not be a building boom.
Tony Alexander, Chief Economist at BNZ top says “There cannot be a building boom in New Zealand because the resources are simply not available”.
Whilst the government has promised 10,000 new affordable homes to help New Zealanders it may not be that simple.
Obstacles to solving our housing shortage includes developers inability to obtain funding due to tighter lending rules. Somehow this massive undertaking will need to be funded by someone. Apart from lending restrictions we would expect to see a more be a cautious attitude from developers and landlords.
In addition investors money drying up the new government have promised a number of measures to make life easier for those renting. We would expect investors to have a more conservative approach to the market as we will probably see measures to regulate their