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Housing affordability plan misses hidden costs

Tuesday 6th of November 2012

The Government announced last week that it would be looking at measures such as increasing land supply for new housing, introducing a six-month time limit on councils processing medium-sized consents, and measures to reduce delays and the costs of Resource Management Act processes.

All in the hopes of making housing more affordable, particularly in Auckland.

But these moves still all require someone – probably private developers – to build houses that will sell in the low to middle price brackets.

And they do not address the fact that developers have to contend with so many hidden costs along the way that it just makes good business sense for them to want to offer as expensive an end product as possible.

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