A leading economist has called New Zealand's housing situation "a cluster-f***" after the release of a new report on the country's housing market today.
The report, A Stocktake of New Zealand's Housing, by the Salvation Army's Alan Johnson, Otago Public Health Professor Philippa Howden-Chapman and economist Shamubeel Eaqub, was released this morning.
Addressing the media from Parliament this morning, Mr Eaqub had to hold his tongue when talking about the dire state of the Kiwi housing and rental market.
"I told the minister I wouldn't use this particular word I wrote down in my notes in terms of the state of the housing market now because what I wrote was that the state of the housing market is a cluster .... – you fill in the gap.
"Rents are going to rise very rapidly because we have screwed up so many different things when it comes to housing in New Zealand," he said.
Mr Eaqub believes the lack of housing in New Zealand is one of the main concerns for those looking to rent.
"We know when there isn't enough housing, there is this cascading effect of pain that is heaped upon the lower socio-economic groups.
The Housing Minister has today unveiled the government's stock take report detailing the many issues with inadequate NZ housing. (Source: Other)
"The census data from 2013 showed that more than half of adults in New Zealand are renting so the story of housing and the issue of renting is no longer an issue of the minority but of the majority," he said.
In response to the report, Housing Minister Phil Twyford said the government had a significant work programme to respond - implementing its KiwiBuild programme, improving conditions for renters, increasing the supply of public housing, and rebalancing tax settings to discourage speculation.
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