Councils stumped by affordable housing issues

The Centre for Housing Research (CHRANZ) has released research that investigates the current role of local government in affordable housing and how it might facilitate more of it.

The research identifies the barriers and challenges councils face in making home ownership and rental housing more affordable in their areas. 

These barriers include restricted land supply; over-heated coastal land prices; lack of funding and finance; and developers’ focus on the high-end of the market and large houses.

Councils directly provide 14,036 dwellings. Almost all (97%) are for long-term rental and most (95.3%) are for older people. Most councils provide this housing because they acquired pensioner housing stock under highly subsidised housing funding provided by central government.

The research findings suggest that if councils are to take a more active role in addressing affordable housing, a multi-pronged approach that involves local and central government, and provides for flexible approaches that are responsive to the circumstances and needs of different areas, is needed.