No cheap houses being built: English
His comments are backed up by the Productivity Commission report on housing affordability which noted that the country’s new homes over the past 50 years had tended to be large, expensive houses or top-end apartments.
This week’s building consent data also supports that: The average value of the roughly 1000 consents issued for June in Auckland was $346,000. For the previous five June quarters, it was just under $300,000.
That does not include the cost of the section, which could be expected to add at least the same again, if not 150%.
Since the 1960s, the number of new houses built that would service the bottom quarter of the market has dropped from more than 30% to 5%. The number of new builds for the top end of the market has increased from 10% to 50%.
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