Even if house prices fell 20 percent, three-quarters of renters still couldn’t afford one

PHOTO: NZ house prices. GETTY

The housing market is so unaffordable that even if house prices fell 20 percent, about three-quarters of renters still could not afford to get their foot on the ladder.

The sobering information came out of official documents released on Thursday, also showing that the Government ignored advice that their housing policy could drive rents up.

The official information paints a grim outlook for Rotorua’s housing market. As Visions of a Helping Hand chief executive Tiny Deane points out, families can barely afford to live there.

“A two bedroom is $420 to $450, a three bedroom is $550 to $600 and then you’re up to $700 for a four bedroom house – and that’s just unaffordable for any family on a benefit for any family that’s working,” he told Newshub.

In just six years house prices have more than doubled in Rotorua, increasing 137 percent. The knock-on effects forcing whānau from their homes and into emergency accommodation.

“The motels aren’t the best for any mum or dads bringing up their kids,” says Deane.

Not enough houses are getting built in Rotorua – a problem we’re seeing nationwide. It’s something the Government aims to fix with its housing policy package announced last month.

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COMING SOON | MAY 2021