Twenty years to fix affordability: Smith
He told the Q&A programme that the target for the Government was to get house prices to about four times incomes.
“Currently in Auckland it's seven. I've set that long-term objective of getting it back to four. That means incomes are growing faster than house prices and you need that repeatedly over a period of a decade or two to get those ratios down,” he said.
“If you look at housing ownership in New Zealand, it's been going backwards every single year since 1987...And if you're looking for some instant magic bullet that the government can wave and change those 20-year trends you're mistaken.”
Smith said a capital gains tax would not make any difference to the housing market.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[The Wrap] What the heck is happening at the FMA?](https://goodreturns.publit.io/file/c_fill,w_300,h_200/a6c3bc06-6401-44de-96e2-286c090e132d.jpg)