It’s no surprise that Hamilton has the lowest homeownership rate in New Zealand at 53.5%, and unfortunately, I can only see this trend continuing. The government and councils are making it harder and harder for everyday New Zealanders to buy a home or even build one.
In the last few years, I’ve personally experienced significant challenges across multiple development projects. A 22-unit site I bought 4 years ago is now undevelopable due to newly classified flood zones. Another site for 17 units in the inner city has no available sewer infrastructure, and a 60-unit apartment hotel project is on hold for the same reason. Development contributions are skyrocketing by 100% over the next 3 years, and councils continue to introduce new requirements that only add to the cost and time it takes to get projects off the ground.
New rules like changes to insulation and window standards in the name of climate change have added up to 30% more to the cost of windows alone. Building costs keep rising due to new regulations, yet we’re told this is somehow solving the housing crisis. Meanwhile, the Resource Management Act (RMA) has been split into three different documents, making it even harder to comply and get consent. It’s almost as if the goal is to discourage development.
Even the Reserve Bank’s policies are making it harder for first-time buyers. While the Debt-to-Income (DTI) limits haven’t kicked in yet, when they do, they’ll make it even tougher for Kiwis to buy their first homes or investment properties. Meanwhile, foreign corporations are encouraged to come in and develop build-to-rent apartments, further squeezing out local landlords and homeowners.
I’ve been doing this for 20 years, and every year it gets more expensive and takes longer to develop housing. Councils and government are piling on costs and regulations, yet they seem blind to the fact that this is only making homeownership more unattainable. For instance, Waipa District Council now requires an infrastructure assessment costing $10,000+ before you even apply for resource consent, for something the council should already know.
Hamilton’s young population is struggling to get on the ladder because the costs are just too high, and lower-paying jobs make it even tougher. Yet instead of addressing these real issues, we get stats and data that paint a different picture. How accurate is this data anyway? “Lies, damned lies, and statistics,” as they say.
The bottom line is, no one is interested in truly making homeownership more affordable, and the trend is only heading one way: less local ownership, more corporate and foreign ownership, and more expensive housing for all.
