Affordable housing policies in a post-COVID aftermath

Abstract

Purpose The purpose of this paper is to assess the outcomes of a suite of affordability policies in Auckland, New Zealand, in the face of a post-COVID aftermath. Improving the access to homeownership while preserving the competitive nature of the housing market will remain a critical goal for New Zealand. Design/methodology/approach This paper develops a spatially delineated one-to-one matching model to assess affordable housing policies such as the targeting of houses to target population groups, a shared ownership/equity scheme and the cascading (or release) of the developed affordable houses into the broader market. Findings Results show that a targeting programme with an income threshold set between $120,000 and $150,000 maximises house sales, but a threshold set at $96,000 maximises the number of moderate-income households becoming homeowners. Several parameterisations of the model demonstrate the potential contradictions (or overlaps) between policy goals. Originality/value The contribution of this paper is a deeper understanding of the market outcomes of affordability policies, and inputs to design strategies that balance market efficiency and fairness. Also, this paper shows that stronger integration across governments (central and local) and actors of the housing market.