The Housing Affordability Index, published each month by interest.co.nz, proves regularly this city is one of the most affordable places in New Zealand for first-home buyers, younger families or older families — between the age of 35 and 39 — to buy a home. Ms Curran provided Ministry of Business, Innovation and Employment data which showed the average rent had gone from $290 in January 2012 to $407 last month, the first time above the $400 mark. This is a five-year period with no allowances made for a general improvement in the standard of rental accommodation in the city.
However, both print and online advertisements show there are two-, three- and four-bedroom houses for rent in the city with much lower prices, although to be fair, houses in what most people would believe are better-quality suburbs have higher rentals. Some of the top rentals for five-bedroom houses can top $500 in Maori Hill and Roslyn.
But does that indicate a housing crisis? Probably not. There is investor interest in Dunedin as the Reserve Bank loan-to-value restrictions hit people interested in property. While some of the Auckland investors have spread to places like Tauranga and Hamilton, there are a few who are coming south.
The latest Real Estate Institute figures show the median price across Otago rose $24,000, or 9%, to $304,000 in January compared with January last year. Prices rose 43% in South Otago but fell 2% in North Otago. Part of the commentary says investors from Auckland continue to be active in the market, with more activity from that source than other investor groups. However, first-home buyers continue to underpin the market.
The number of listings is also on the rise, helping to alleviate the tight inventory position across the region.
So it seems prices are rising as people make changes to their personal circumstances. If an investor buys a property, probably as a rental, politicians appear to be suggesting they do not make a return on their investment. People selling their own properties to move up the property ladder or, perhaps retire, will not thank politicians for suggesting Dunedin keeps its prices low and thereby reducing their capital gain from the sale of their home.
This is a city which wants to be welcoming of refugees from war-torn nations but according to Ms Curran, there is nowhere to house them.
The waiting list for a Housing New Zealand property climbed to 80 in December last year, the longest it has been in more than two years. It is a matter of record some of the Housing New Zealand properties are not fit for purpose. The tendency towards smaller families now means some of the larger properties are not suitable for a family of four. And, some people do not want to leave their current Housing New Zealand property for something smaller when their circumstances change, citing their need to remain in their "home" while forgetting the property is actually a rental and should be available to others to use when necessary.
Opposition politicians continue to talk about a housing crisis in New Zealand and undoubtedly there is a shortage of houses in some areas, particularly Auckland. But the Government is making land available for housing where appropriate and properties are being built. There is a shortage of skilled staff to work in building projects and yes, some of those need to be imported, adding to the housing pressure. New Zealand, and Dunedin, in particular, is far from having a housing crisis. Renters may not always get exactly what they want, but some leeway needs to be allowed. It is becoming obvious housing availability and affordability have become election-year issues. Voters need to be aware of all the facts, not just selective use of data.
