I was on the plane to Auckland on Saturday, and instead of reading more of my boring book I flicked back through a series of older newspaper articles that I’ve meant to read for a while. One was this piece from the head of Warren and Mahoney, Peter Marshall. He is talking about housing in the eastern frame, and is pretty boosterish about it. He says that we should be building affordable housing – great!
Christchurch has apartments now on the west side between the central city and Hagley Park but they are fairly high end.
“What was missing was an affordable townhouse which is where that is going to be pitched.”
What is affordable?
“$500,000, $600,000, there might even be some less.”
THIS GUY THINKS THAT $600,000 IS AN AFFORDABLE HOUSE. JUST THINK ABOUT THAT FOR A BIT.
Are you still digesting that – I’ll give you another moment.
To put that in context, here are some other numbers:
Whereas the average house price before the quakes had been around $310,000, an average new home including land would now cost between $450,000 and $550,000.
Those figures – from the Salvation Army – come with this additional, understated comment:
“This difference is likely to be the continuing source of housing stress for many households for many years to come.”
If you take the mid-point of that latter bracket – $500,000 – then the average house price has gone up $190,000 in 5 years. That is pretty much 10% a year, each year since the quakes. If people’s wages had been going up 10% a year, I think we’d know about it. They haven’t. Saying that things aren’t as bad as they are in the Auckland housing market is irrelevant; here we had a major disaster, and the government has a duty of care to ensure that the people of Christchurch suffer as little as possible.
Despite repeated warnings of a housing crisis, National refuses to accept that there is anything wrong. And why would they? They are the party of property prices; they returned a stunning result in Christchurch at the last election, and I reckon that is in large part due to many, many people feeling very good about the increasing value of their property portfolio. That this dude can say that $600,000 – twice what the average house cost just five years ago – is an “affordable” home with a straight face shows how totally broken the market is.
No-one is going to provide affordable housing that is actually affordable for the people who need it. In the short term, this will serve the government and it’s allies; the head of the CCDU Warwick Isaacs is about to leave so he can join Stonewood Homes, a builder of cookie-cutter landfill subdivisions in which half the houses failed their inspections. In the long term, Christchurch will become a city that is only affordable for the homogenous, white middle-class that CERA depicts in their advertising, whilst the poor, the working class, the migrants, the students and the people who generally make cities interesting places to live give up on the White Man’s Dream and head for greener pastures.