Sorting (and costing) the way out of the housing affordability crisis in Auckland, New Zealand

Author:

Fernandez Mario A.,Joynt Jennifer L.R.,Hu Chad,Martin Shane L.

Abstract

Purpose This paper aims to explore the impact of the joint operation of affordability policies and whether their impact is meaningful relative to the size of the affordability crisis. Its purpose is to construct the features of a comprehensive policy package linked to a measurable outcome: solving the affordability crisis in Auckland. This study investigates the scale and nature of an affordability package that responds to three research and policy questions: What should the rate of annual growth of affordable housing be to solve the affordability crisis? Consequently, how long would it take to solve it? And how much would that policy package cost? Design/methodology/approach In this paper, the authors argue that the disjoint operation of affordability policies is one of the reasons why their impacts relative to the size of the affordability crisis has been small or negligible. Furthermore, this study demonstrates that affordability is as much about raising households’ incomes as it is about lowering housing prices. This study uses a modelling-based framework to simulate some of the levers that local and central governments have to affect housing prices and affordability: direct intervention on the supply-side and subsidies. Specifically, this simulates retention-and-targeting (RT) programs and subsidies to raise deposits via shared ownership (SO) schemes. Findings This study finds that solving the affordability crisis would take a decade if the supply of affordable housing increases by at least 45% annually. With the introduction of RT and SO programs, it could still be solved within a decade, where the required growth rate decreases to 35%. However, for growth rates between 5% and 10%, the policy goal is met in approximately 40 years, and the SO program becomes exceedingly expensive. Originality/value Housing affordability is one of the hottest policy issues in New Zealand and the developed world. In the past decade, a number of affordability policies have been introduced with limited success due to their lack of interoperability and siloed efforts. Results in this paper should be interpreted as the boundaries of what is feasible and realistic in the realm of affordability policies. Therefore, its contribution relies on investigating the multiple effects if the financial, administrative and political barriers to RT and SO programs could be overcome. Its scope is a blueprint for the design of policies in other cities where unaffordability has become extreme.

Publisher

Emerald

Subject

General Economics, Econometrics and Finance

Reference70 articles.

1. Opportunistic matching in the housing market;International Economic Review,2007

2. A theory of the urban land market;Papers and Proceedings Regional Science Association,1960

3. A theory of the urban land market;Papers in Regional Science,2005

4. Long-term housing affordability in spatial general equilibrium,2020

5. Home, meaning and identity: learning from the English model of shared ownership;Housing, Theory and Society,2011

Cited by 2 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3