Affordable housing: are we finding the cure for a wrong issue?

We belong to the social media age, were they publish their opinion everyday on every issue . As a member of this millennial generation, I believe it is time for me to express mine. Firstly, I don’t claim to be an expert of any subject, this blog is a mere personal perspective and nothing more. There are several issues that I want to write about and share my thoughts, however let’s make a start with the issue that is effecting my generation the most - housing.

Every Friday when I catch-up with my friends for a beer, housing crisis is a conversation starter! Shouldn’t that be the last thing to talk about, especially on a Friday night? Most people of my generation don’t own a house and even if they do it is either because they were saving since teenage or through parents aid, but that is a minority. Let’s say we do find a house in our budget, we will then end up paying mortgage until our last breath. This is terrifying!

So coming to the basic question, why are we having the housing crisis in Auckland? Well, the simplest answer is because the supply is not proportional to demand. We need more houses to be built, but the numbers are far too less to make any impact (there are many articles explaining the statistics). Recently Bob Dey wrote blog explaining the deficit between the numbers of houses consented and houses actually being built. The first thought that comes to mind is what is the government and council doing about it? In the budget which was presented last week, Steven Joyce announced significant funds for housing and infrastructure. Housing New Zealand is going to redevelop its properties in Auckland and nationwide. Infrastructure will be provided to future urban areas and many things which will be headlines for next couple of days. Auckland Council on the other hand is trying to ease the consenting process, through Panuku Development its working on regeneration of town centers and advocating higher density in the existing urban boundary through the Unitary Plan.

All these efforts from both the governing bodies is a welcome step. Doing something is better than nothing. But is this enough? We all know it’s certainly not. The solution has to be the one which will have impact on ground. Yes, policy and rule books are needed to make it simpler, but they alone can’t resolve the issues. Talk to any builder and he will tell you that he wants to build more houses but it’s not financially feasible for him to do so. Many intellectuals stress for terrace housing and compact living, which I strongly support as well. However, it is expensive to build a terrace than a single detached house. How can we achieve affordable housing in a high density environment if the means to deliver it are unaffordable? Construction cost is the main issue. We need a extensive brain-storming to solve this issue, which I must admit has started in a minute way. We need innovation in our construction technology which can help reduce the construction cost. We have to strengthen our investment in research which will pay dividends in a long run. Most of the time governments around the world look at a problem from high up but if the issue is this complex you need to have a thorough understanding of the on ground situation. We need to understand what the real issue is or else we are just wasting our resources for a cure which wont going make any significant difference.

In the end, I am optimistic that my generation will accept this challenge and come up with a solution, it’s our future at stake and our cross to bear.