Economist

PHOTO: Given recent increases, in 30 years social housing in the suburbs will cost the Government $1.5 billion, Shamubeel Eaqub said. Source: Breakfast

A top economist says the Government’s plan to address social housing issues is set to fail.

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A recent Salvation Army report found a three-bedroom home in Porirua costs around $600 per week to rent.

And with rent increases, Shamubeel Eaqub says in 30 years’ time social housing in the suburb will cost the Government $1.5 billion.

“We should be using this $1.5 billion today to house people better,” he told Breakfast today. “And that includes everything, from building more state houses. But we’re not going to build enough.”

“Our plan to build state houses in the next four to five years is half of the current wait list. We’re planning to fail.”

Meanwhile, the mayor of Porirua is worried about the negative impact rent price increases are having on the community.

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