Thursday, 28 April 2016

Quote of the Day: On young people buying houses in Auckland–or trying to

 

“…the broader point is that having a tiny number of individuals making extraordinary sacrifices to enter the housing market is still a huge departure from historical norms.  Previously most people bought houses, because most people could.  But prices are currently at an historical high relative to incomes.  The fact that young people buying houses in Auckland is such a singular event that it is newsworthy is a signifier of the problem in of itself.”
~ Danyl McLauchlan, from his post 'Chart of the day, kids are too busy watching plasma TVs over Skype to make charts edition'

2 comments:

  1. Which generation before now could 'young people' buy houses?

    None in my experience. Take the over-regulation due supply issues of Auckland out of the equation, and apart from some suburbs in Chch and Welly, I reckon the working-ethic young can afford houses in most of NZ currently. And on my client base I have a host of under 30's with young families who are paying off whole farm ownership. Note the two key points to those young farming successes: hard work, and married *couples* - single parenthood is a ticket, pretty much, to poverty, if not welfarish poverty.

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  2. I agree. The quality and size of your average house is also greater than it's ever been, as are young house buyers expectations - so comparing house prices relative to income can be misleading. That is not to dispute government regulations and credit creation make prices higher than they would otherwise be, but it's not the entire story.

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