Housing ‘crisis’ but new boom unlikely

Speaking at the Institute of Financial Advisers annual conference in Auckland yesterday, he said he had decided to start using the term "housing crisis" after media reported comments Social Development Minister Paula Bennett made about rent hikes in caravan parks.

Alexander said the story highlighted a problem with housing affordability resulting from a lack of supply coming on to the market, particularly in Auckland where supply problems are most acute.

“There’s going to be a housing affordability problem at the lower end of the socioeconomic spectrum; people are going to be living in caravans, garages, sleep-outs etc.”

He said there had been investigations into housing affordability but nothing had really been done, largely because options such as expanding urban limits or increasing urban density would be unpopular with many voters.