October 17, 2018
Market failure in housing model
The Salvation Army’s social policy unit is calling for a return to the subsidies that put generations of New Zealanders into their own homes.
In a new report Beyond Renting, unit head Allan Johnson says the private rental market is heading for problems as the strategy for the past 30 years of encouraging mum and dad investors to become landlords isn’t meeting housing need.
During that period home ownership rates and especially Māori home ownership rates have collapsed.
Mr Johnson says government needs to step up, not just with KiwiBuild but with some sort of shared equity system he’s calling KiwiBuy.
"The state’s investment in the housing is protected until someone actually buys it out. It is not like it's a giveaway. it's not like a raffle some people win and no one else gets a benefit from. It actually makes certain the public interest is protected but also assists people to move into home ownership," he says.
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