24.08.06 :: Terrence Aschoff, Manager CHRANZ

The Centre for Housing Research, Aotearoa New Zealand (CHRANZ) has released today research that addresses the causes of, and solutions to, housing affordability problems in the Nelson, Marlborough & Tasman regions, in the context of labour market, economic and demographic developments. The research, led by Motu Economic and Public Policy Research, involved researchers with economic, social and property expertise and included researchers based in Marlborough and Nelson/Tasman. The project was jointly funded by CHRANZ, the Ministry of Economic Development from the Regional Initiatives Fund and the Work and Income regional office for Nelson, Marlborough and the West Coast.

Arthur Grimes of Motu said “this study presents a range of potential solutions designed to promote affordable housing in Nelson, Tasman and Marlborough. The availability of affordable housing can have a major impact on the workforce and economic base of the three regions. We invite local agencies, including local government, employer and community groups, and central government agencies to examine and, potentially, adopt the solutions.”

The key findings include:

• Nelson, Tasman and Marlborough (NTM) requires improved access to affordable housing, improvements in housing quality and increases in the supply and diversity of accommodation types.

• Availability of affordable housing is important in NTM for both economic and social reasons. It is vital for stability and productivity in the workforce, especially in emerging and critical industries and for a population with an increasing number of retired people, young people, and those needing special consideration.

• House prices in NTM rose 70% between 2002 and 2004. The surge in population came from increased employment and internal migration (retirees and purchasers of vacation homes) and has put pressure on the housing market. Housing supply (both for owner-occupied and rental properties) has not matched demand. Home ownership rates and housing affordability have declined. Housing development has been restricted by land availability, zoning, infill and density regulations, lack of infrastructure, natural hazards, the desire for green space and questions over the use of productive farmland for housing.

• The NTM public thinks that problems with housing affordability pose a significant restraint on economic development and productivity in their regions.

• A comprehensive set of solutions is offerred including options that endeavour to increase and diversify the supply of affordable housing. Most involve changes to planning, infrastructure/transport, leasehold and other tenure options, and regulations on infill/density. Others address the needs of migrant workers, support from employers, overcrowding, poor quality rental properties and compliance with codes and consent processes.

A full copy of the research report is available online. A copy of the CHRANZ Research Bulletin is available online.

For further information please contact:

Terrence Aschoff
CHRANZ
terrence.aschoff@chranz.co.nz
Phone: 04 439 3326

or

Arthur Grimes
Motu
Phone: 027 2489 389