Land should be released: Commerce Committee

Not surprisingly the number one recommendation of the Commerce Committee enquiring into housing affordability was that land should be released if housing is to become affordable. The Committee noted that the median price of a section in Auckland has increased from $139,000 in 1992 to $443,000 in 2007 an increase of 218%.

In relation to the metropolitan urban limits (MUL) which places an artificial boundary around Auckland the report had this to say:

“We consider that interventions to constrain the supply of land for new housing force up
section prices. We believe that the Auckland Regional Council should carefully assess this
dynamic, taking into account issues such as infrastructure. We believe a more deliberative
approach that focuses on making more suitable land available for new subdivisions would
lead to lower section prices and more affordable housing.”

Many of us such have been saying for years that it is the politicians strangling the supply of land that has led to economic stagnation and the social ills that we see all too often in places like Manukau.

Compare the situation that we are facing in the Auckland region with a dynamic city such as Houston, Texas where land supply is not constrained and housing rises only at the rate of inflation even with the inflow of refugees in the aftermath of Hurricane Katrina.