29.08.07 :: Terrence Aschoff, Manager CHRANZ

The Centre for Housing Research, Aotearoa New Zealand (CHRANZ) has released today research that investigates the current role of local government in affordable housing and the potential for enhancing local government’s role and activities in facilitating affordable housing. The research also identifies the barriers and challenges councils face in making home ownership and rental housing more affordable in their areas. This research, by the Centre for Research, Evaluation and Social Assessment (CRESA) and Public Policy and Research, was jointly funded by CHRANZ and the Auckland Regional Council.

The key research findings include:

Most councils believe lack of affordable rental and owner-occupied housing is a significant problem that is more serious than unemployment, crime or pollution.

Councils directly provide 14,036 dwellings. Almost all (97 percent) are for long-term rental and most (95.3 percent) are for older people. Most councils provide this housing because they acquired pensioner housing stock under highly subsidised housing funding provided by central government. The council stock is managed relatively passively and is largely detached from any real analysis of affordable housing dynamics, and any robust monitoring or research into the nature of housing need.

Councils consider there are a number of barriers to their involvement in increasing the supply of affordable housing. These barriers include: restricted land supply; over-heated coastal land prices; lack of funding and finance; ambivalence over the role of councils in housing; lack of guidelines about tools and mechanisms for involvement; and developers’ focus on the high-end of the market and large houses.

Most councils have little knowledge of international practices and experiences in addressing affordable housing. Overseas the three main characteristics that local authorities active in providing and/or facilitating affordable housing have in common are: political commitment and leadership; local housing strategies, policies and plans that establish affordable housing goals and implementation processes; and awareness of the impact of their own statutory powers and processes on the availability of affordable housing and willingness to overcome regulatory and planning barriers and find enabling mechanisms.

The research findings suggest that if councils are to take a more active leadership role in addressing affordable housing a multi-pronged approach is needed that involves local and central government, and provides for flexible approaches that are responsive to the circumstances and needs of different areas.

Priorities for action include: joint central and local government approaches, better analysis and evidence-based research, capacity and capability building, and the development of local housing strategies that address affordable housing needs; leverage housing outcomes for economic and social benefits in the community; and that are linked to transport, environmental sustainability and infrastructure outcomes.

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:

Kay Saville Smith
Research Director
CRESA
kay.saville-smith@cresa.co.nz
Phone: 04 473 3071
Cell: 027 4303 575

or

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