Source:Auckland Council Chief Economist's Office
Auckland’s housing market still dominates’s debates, and it has even been described as “the major political issue of not just the year, but maybe of this decade”.
The issues are two-fold: sustained inequality, and macroeconomic instability (i.e. the risk of a rapid house price deflation that harms the wider economy, with significant social consequences).
The inequality risks are well articulated in Shamubeel and Selena Eaqub’s new book Generation Rent. They argue New Zealand is at risk of creating a class structure of families that are ‘haves’ and ‘have-nots’ that could echo through generations. Many families forced into renting also don’t have the same security of tenure and implicit retirement saving that home owners do.
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