‘Housing affordability’ has been a term used to refer to a problem that arises when the costs of housing are seen as being unreasonably high in relation to incomes. In the United Kingdom and Australia the local town planning systems have been used to address housing affordability issues. This response in countries that share New Zealand’s town and country planning history raised the question for this research of the local government response to housing affordability issues in the city of Christchurch, New Zealand. This research was undertaken during the fifth year after the 2010/2011 Canterbury earthquake series. Research conducted by the Centre for Housing Research
Aotearoa New Zealand and the New Zealand Productivity Commission present quite different pictures of the housing affordability problem, suggest different solutions and indicate different roles for levels of government, the community housing sector and the housing market. The research undertaken for this dissertation aimed to address the question of the role of the state, through the lense of a local response to housing affordability issues, in the context of a central government response focused on land supply and reforming the Resource Management Act 1991.
The housing and mortgage market in Christchurch experienced significant changes since the 2011 earthquake, especially after the reconstruction of the city. The increasing speed of Christchurch average house price exceed the average house price of the whole country, as well as the number of new dwellings. By this regard, this study surveyed the households in Christchurch to analyze the effect of the earthquake on housing and mortgage market. This includes factors such as housing price, interest rate, government policy and socioeconomic factors in terms of age, gender, educational attainment, income, marital status and family life cycle.
Logistic regression model is used to analyze the data. The study provides an overview of the housing market and mortgage market in Christchurch. The logistic regression, results show changes on sensitivity between the socio-economic factors and house purchase, as well as mortgage borrowing pre- and post-earthquake. The result indicates that the earthquake in Christchurch has affected households’ decision on house purchase and mortgage borrowing.
"Prior to the devastating 2010-2011 Canterbury earthquakes, the city of Christchurch was already exhibiting signs of a housing affordability crisis. The causes and symptoms were similar to those being experienced in Auckland, but the substantial damage to the housing stock caused by the earthquakes added new dimensions and impetus to the problem. Large swathes of the most affordable housing stock in the east of the city were effectively destroyed by the earthquakes. In itself this would have pushed the mean house price upwards, but compounding problems exacerbated the situation. These include the price effects of reduced supply of both rented and owned housing and increased demand from both displaced residents and an influx of rebuild workers. The need for additional temporary housing while repairs were undertaken and the associated insurance pay-outs bidding up rents with improved rental returns leading to increased interest in property investment. Land supply constraints and consenting issues inhibiting the build of new housing and political infighting and uncertainty regarding the future of parts of the city leading to a flight of development activity to peripheral locations and adjoining local authorities. Concerns that the erosion of the city council rating base combined with inadequacy of insurance cover for infrastructure will lead to large rates increases, increased development costs and reduced amenities and services in future years. These and other issuers will be elaborated on in this paper with a view to exploring the way forward for affordable housing Christchurch City."
TE URUROA FLAVELL to the Minister of Conservation: Does he agree with Parliamentary Commissioner for the Environment, Dr Jan Wright, that joint decision-making with the Minister for Energy and Resources on mining the conservation estate undermines the role of the Minister of Conservation as guardian of that estate, and how will he respond to her advice to Parliament that conservation should take precedence?
Hon DAVID CUNLIFFE to the Prime Minister: Does he stand by his statement that "for most New Zealanders an indicator of how well the economy is doing is whether or not they can keep up with the cost of living"; if so, is he satisfied that they currently can?
Hon TAU HENARE to the Minister of Finance: What reports has he received on inequality in New Zealand, and how do recent changes in trends compare to other countries?
Hon DAVID PARKER to the Minister of Finance: Does he agree with BERL that "outside of dairy and forestry, export receipts have effectively flatlined since April 2009" and that "The risks inherent in such a narrowing of our export base should be of concern to all"; if not, why not?
Dr CAM CALDER to the Minister for Tertiary Education, Skills and Employment: What announcements has he made about the Māori and Pasifika Trades Training initiative?
Dr RUSSEL NORMAN to the Prime Minister: Does he stand by all his Government's decisions?
PAUL FOSTER-BELL to the Minister of Housing: What progress has he made with local government in securing Housing Accords under the legislation passed last year, and how are they increasing the supply and affordability of housing?
Hon ANNETTE KING to the Minister of Health: What was the original forecast cost for Health Benefits Limited and what is the revised forecast cost now, if any?
MAGGIE BARRY to the Minister of Education: What recent announcements has she made on the Government's $359 million investment to raise student achievement?
Hon RUTH DYSON to the Minister for Canterbury Earthquake Recovery: How much has the Canterbury Earthquake Recovery Authority spent on legal fees in the last 3 years?
DENIS O'ROURKE to the Minister of Transport: When will the Government provide a comprehensive and integrated land transport plan for New Zealand?
PAUL GOLDSMITH to the Minister of Revenue: What is the objective of the Government's recently announced Taxpayer's Simplification Panel?
SHANE ARDERN to the Minister of Finance: What reports has he received on the economy?
DAVID SHEARER to the Prime Minister: Does he expect all his Ministers to comply with the responsibilities set out in the Cabinet Manual?
JONATHAN YOUNG to the Minister of Justice: What steps is the Government taking to improve public services in law and order?
GRANT ROBERTSON to the Minister of Local Government: Will he take the same approach to compliance with the Cabinet Manual as Minister for Local Government as he did as Minister for ACC?
DENIS O'ROURKE to the Minister for Canterbury Earthquake Recovery: Does he stand by all his recent statements?
EUGENIE SAGE to the Prime Minister: Does he stand by his statement, “I am not going to do something silly with the Department of Conservation estate”?
Hon DAVID CUNLIFFE to the Minister for Economic Development: What, if any, are the capital costs, write-downs and redundancy costs expected from the merger of the Ministry of Economic Development with the Ministry of Science and Innovation, Department of Labour and Department of Building and Housing?
Dr PAUL HUTCHISON to the Minister of Health: What progress is being made in relation to the Government’s key result of increasing infant immunisation rates and reducing the incidence of rheumatic fever?
Hon MARYAN STREET to the Minister of Health: Does he support Pharmac’s provisional decision to engage Auckland company, Pharmaco, to be the sole supplier of new diabetic meters?
PESETA SAM LOTU-IIGA to the Minister for Social Development: Has she received any reports on the Future Focus welfare changes in 2010?
Hon PHIL GOFF to the Minister of Foreign Affairs: Have New Zealand heads of mission overseas been recalled to a meeting in Wellington on 2 April, and if so what is the cost of holding this meeting?
Dr KENNEDY GRAHAM to the Minister for Climate Change Issues: Is he concerned by a recent report of an international team of scientists that, even with a two degree celsius rise in average global temperature, future generations could face sea levels of up to 12 to 22 metres higher than at present?
