24.08.07 :: Terrence Aschoff, Manager CHRANZ

The Centre for Housing Research, Aotearoa New Zealand (CHRANZ) has released today research that investigates the links between housing, work, infrastructure and regional development in the Western Bay of Plenty and Eastern Bay of Plenty sub-regions. The research, by Capital Strategy and SGS Economics and Planning, was jointly funded by CHRANZ and the Department of Labour.

John McCardle, Capital Strategy said “The next step is for local agencies, including local government, employer and community groups, and central government agencies to consider the research and decide what their individual role is and how to work together to implement a set of solutions to address affordable housing issues in the Western and Eastern Bay of Plenty regions ”

Housing stress is experienced by households if they are in the bottom two quintiles of income distribution (gross annual household income up to $30,000) and spend more than 30 percent of this income on housing costs (both rental and owner-occupied). Housing stress currently affects between 8,800 and 11,100 households, or 13 to 17 percent of all Bay of Plenty households (41.7 percent of rental households and up to 17.5 percent of owner-occupied homes.)

To meet economic growth targets in the Bay of Plenty, total employment is projected to increase more than 70 percent by 2051 with approximately 55,000 additional jobs created between 2001 and 2031. These new jobs are estimated to support an additional 33,390 households and to require 3,000 to 5,100 affordable dwellings.

The conservative costs to the region of not meeting the future demand for affordable housing (between 2001 and 2031) are estimated to be: 5,000 fewer jobs; a $500 million drop in projected regional output growth; and $196 million less ‘value added’.

The authors have used the research results and consultations with regional reference groups to frame a set of ‘solutions’ to affordable housing issues impacting on the regions. These solutions have three key themes: (1) maintaining a healthy and competitive land and housing market; (2) maintaining a commitment to adequate and appropriate ‘safety net housing’; and (3) accelerating the development of a Third Sector in the region’s housing market. The underlying objectives for the solutions are to contribute to diverse and healthy communities; reduce the potential for social exclusion and to increase the scope for an efficient labour supply into the region’s export and local service industries.

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:

John McCardle
Capital Strategy
john@capitalstrategy.co.nz
Phone: 09 817 7665

or

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