Waikato Housing Initiative

01/08/2024

Registrations are open for another Waikato Housing Initiative event on the 9th of August.

To register, please respond using this link: https://www.addevent.com/event/cQ22357512

We look forward to seeing you there!

14/12/2023

Great article from Alan Maxwell with some reflections on better use of existing housing stock. Clearly we need new homes built at scale, with a real focus on those in the affordable range with security of tenure preserved, but as Alan points out we can also encourage ways for existing larger family homes to be available to families once more - and "release" single (often elderly) owner-occupants who would like to downsize but have become economically trapped where they are.

Further, the increasing pressure of higher cost of living and double-digit rate rises means those on a fixed income may struggle to afford to live in the home they are simultaneously unable to leave without access to bridging finance to get to the downsized home now more appropriate.

https://lizardnews.net/lizard-news-december-2023/

12/12/2023

This article focuses on the impact of international students on the rental market in Australia - I don't have a particular view on their solution, but it did make me reflect on the impact on the NZ rental market of general immigration now that settings have been loosened again.

As we reflect on the last few years it's interesting to note that Covid's closed borders meant that NZ tested so-called "law" of supply and demand in the housing market. We held demand steady (i.e. no significant inward migration) and through a building boom with unprecedented levels of new building consents issued by councils, increased supply significantly.

So affordability improved?? No -across NZ we saw unaffordability rise to new heights. Looks like the "law" was more of an economic hypothesis, perhaps holding true in the longer term but woefully inadequate in a meaningful timeframe.

And now we add immigration - a genuine boost on the demand side. Stats NZ have reported that the net migration gain in the August 2023 year is 110,200 and added to that, many skilled migrants are prevented from purchasing a house for the first year (other than going through an Overseas Investment Office process) under their VISA conditions effectively forcing them in to the rental market.

A lot of renters to add to an already stressed rental market at record levels of unaffordability.

The new government has a range of new policies designed to address these issues -through that, the rental side of the housing market will need to remain in sharp focus. Infrastructure -particularly 3 Waters- remains key to enabling new supply (Build-to-rent included) and must also be at the forefront of policies for both central and local government. - Aksel Bech

Migration was expected to bounce back once Australia’s borders reopened, but it’s run far stronger than anyone imagined.

09/11/2023

Interesting new initiative announced by ASB - a new funding tool aimed specifically at enabling social and affordable housing projects that otherwise struggle to meet traditional bank lending criteria.

The WHI has long identified funding as one of the three "big rocks" to be shifted to unlock affordability (along with Policy & Regulation and Availability of appropriately zoned and serviced Land) - so this is a helpful initiative from one of NZ's major banks.

ASB will support the delivery of up to 1,000 new homes over the next two years, funded through its new Accelerated Housing Fund for affordable and social housing.

07/11/2023

A recent article on the shortage of rentals in Taupo - driven by the so called "empty rate" of houses that are there but unavailable for normal owner occupancy or rentals as they are either a holiday home left vacant for the owners occasional use or they are part of the Air BnB short term visitor and tourist accommodation market.

Elsewhere in the Waikato we see similar outcomes in Coromandel as well as in Raglan - all following in the footsteps of Queenstown where rentals are so scarce that hot-bedding and overcrowding amongst hospitality and other minimum wage employees is becoming commonplace.

Build-to-rent and other ways to incentivise additional good quality rental stock to be created is not the norm for the New Zealand housing market - but now desperately needed as part of the new models to fix a broken housing system!

It’s even harder for people with pets, or on low incomes, to find a place in the district with rents going up 20% in the past two years.

18/10/2023

It's definitely getting tougher for renters!

This article highlights the latest figures for Hamilton where rents are rising by $20 per week, demand is also on the rise (by 3%) and number of listings for available listings on Trademe dropped by 21% for the city.

And no better for the Waikato region as a whole; here rents rose by $25 per week to now match the city's median average rent of $550 per week, demand rose by 2% and number of listings dropped by 15%.

That's a sure recipe for continued upwards pressure on rents in the immediate future, in the city and especially across the region where median household incomes tend to be lower than in the city.

The WHI continues to advocate for new additional supply of affordable homes, to buy or to rent with security of tenure, and the new initiatives of BTR (build-to-rent) or rent-to-buy and other forms of shared equity/progressive home ownership are an important examples of that.

Hamilton renters are forking out $20 more a week as the number of available rentals in the city drops.

12/10/2023

Big shout out to Hamilton City Council who have now also announced their intention to progress with the notification of Inclusionary Zoning (IZ) as an important new lever to promote new retained affordability housing options.

It is a powerful response to the housing affordability crises that has seen median household prices in the city rise to around $750,000 to $800,000 representing a multiple of 7 times the median household income in Hamilton -severely unaffordable for most households.

IZ is not the only solution or system change required to fix a broken housing system - but Queenstown has shown the way in New Zealand with 138 homes already completed and another 126 currently in the design or build stage, yielded from their use of the principles of IZ with new developments there.

WHI is pleased to see this move by Hamilton City Council including adopting the IZ district plan chapter commissioned by WHI as their starting point for a plan change; much work remains to be done to get to the notification stage but as is often the case, the first step in a new journey is often the greatest one.

Major changes to Hamilton's District Plan are on the cards for early 2024 as Hamilton City Council looks to address growth challenges within its planning framework.

04/10/2023

We are talking more and more about Inclusionary Zoning - but it's rare to hear the opposite term.

Yet that is another way to think of the use of covenants: it's a form of exclusionary zoning.

The stated reasons are often about protecting the property value for homeowners in these subdivisions - by specifying types of cladding, roofing materials, minimum dwelling sizes and so on, but has morphed into something must more that seeks to dictate to a much greater extent how residents live their lives in such communities.... right down to the placement of rubbish bins and maximum permitted height of dogs!

In amongst all of that, any chance of more affordable housing options or different tenure options are excluded. They are simply not permitted -which is of course the intended effect of the covenants.

Excluding opportunities for a range of different housing typologies, masterplanned with integrated affordable options from the outset.

Covenants can be used in a variety of positive ways too, including ensuring retained affordability, but city planners must be careful to keep in mind the principles of new communities or densification of existing communities still catering for a whole range of individuals and families -not just a select few.

The height of your dog, placement of clotheslines, and even the shape of your letterbox are among the unusual rules of subdivisions.

02/10/2023

The pressure’s on councils to help with affordable housing as building demand’s drying up - and one Waikato council is pushing to get cheaper homes included in large-scale developments.

The pressure’s on to help with affordable housing as demand dries up - and one council is pushing to get cheaper homes in large-scale developments.

19/09/2023

"It’s not social housing that Queenstown needs, it’s homes for working people and those trying to get on the property ladder"

That's the stark reality of the new normal according to Julie Scott who runs the Queenstown Lakes Community Housing Trust.

Queenstown is deeper in the housing crises than most parts of our region, a victim of its own stunning scenery and beauty, but parts of the Waikato are not far behind. And that's the focus of the Waikato Housing Initiative - not social housing but that missing piece of the housing continuum: affordable rentals and first homes.

System change is required with new models to deliver affordability - and the Inclusionary Zoning tool used in Queenstown that will eventually help address these issues is now also being looked at here in the Waikato, starting with Waipā District Council. Julie and her team have generously shared of their experiences and learnings so that we here in the Waikato can act before we are forced to live the reality already there in Queenstown!

https://www.newsroom.co.nz/workers-living-in-cars-the-new-normal-in-queenstown