Govt receives housing affordability report

The Government has received the Productivity Commission's final report on housing affordability and will provide a thorough response once it has considered it in detail, Finance Minister Bill English says.

"Housing affordability is an important issue for New Zealand families and our economy," Mr English says.

"New Zealand experienced a sharp rise in house prices over the past decade, resulting in declines in housing affordability and home-ownership rates and large increases in household debt.

"Rising prices made it harder for families to climb the first rung on the housing ladder and the accumulation of debt left the New Zealand economy more vulnerable to external shocks.

"These imbalances also create further pressure on demand for social housing and accommodation subsidies.

"The Government welcomes the commission's thoughtful contribution on how to reduce pressure on housing prices and on more effective government support for people who struggle in the housing market.

"The Government will look at the Productivity Commission's recommendations and carefully consider its response over the coming months," Mr English says.

The report, which was tabled today, looks at several issues affecting housing affordability, including urban planning, regulation, industry performance and taxation.

It is available at www.productivity.govt.nz/final-report/1468