Researchers are warning that the rising cost of homes could have serious implications for New Zealanders' health and education, and for the economy.
Monday, July 26th 2004, 8:27AM
by The Landlord
A new report says homes have steadily become less affordable for both owners and renters in the past 15 years.
The main driver of property price rises was the increasing cost of land, the report by real estate advisory company DTZ New Zealand said.
"There are significant social implications associated with a continued decline in home ownership affordability both for the households concerned and their communities," DTZ said in the report prepared for the Centre for Housing Research.
There were clear links between overcrowding and substandard living conditions, and a range of adverse health, education and social outcomes.
Being forced to live in areas where housing was cheaper could harm people's job prospects, the report said.
By contrast, there could be labour market shortages when workers were driven out of high-cost housing areas.
