PHOTO: RNZ
A real estate company is predicting Auckland’s housing crisis is set to deepen as some developers choose to sit on land because they cannot turn a profit.
olliers International says lower house prices and steeper building costs has put the brakes on development in the city.
It projects that about 15,000 houses or apartments need to be built a year to meet the demand and keep up with growth.
Colliers director Alan McMahon said it was virtually certain the number of houses being built would fall short of this, especially in the next few years.
He said house price inflation had virtually stopped, which was good for affordability, but there was a flipside.
“The other side of the coin is that it’s harder to develop new houses because it’s harder to make a profit and therefore developers won’t build as fast or as many as they would like to.”
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