PHOTO: ROSA WOODS/STUFF – High prices might stop people moving cities for work.

New Zealand’s high house prices may be keeping a lid on New Zealand’s productivity.

In their latest Property Focus report, ANZ economists said house prices, which have tripled in real terms since the 1990s, are limiting New Zealand’s economic expansion.

New Zealand is a productivity underperformer by OECD standards.

“High house prices make it difficult for both workers and businesses to move to locations that will prove more productive, meaning that resources are not allocated in the most efficient way possible,” the ANZ economists said.

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