Exclusive: Data proves lack of supply is driving New Zealand's housing crisis

Katie Bradford
Source: 1News

A lack of supply has long been blamed for as a key driver for our housing crisis.

In the past year, house prices have soared past pre-Covid levels in much of the country, with record low interest rates and a lack of supply and land largely being blamed.

1 NEWS can exclusively reveal data from homes.co.nz and Infometrics shows the more houses that are built in a region, the slower the house price rise is.

In Hamilton, 14.8 percent of its housing stock has been built in the last decade, and house prices have risen by just over 13 per cent.

Christchurch and Tauranga also sit around the 14 per cent mark.

In Auckland, where just 9.5 per cent of its homes have been built in the last 10 years, price rises have roared past 20 per cent.

The capital fares even worse, with Wellington having had just 7.1 per cent of its housing stock built in that time, but its price rise is over 22 per cent.

Dunedin lags, with 4.2 per cent.

Infometrics economist Brad Olsen says it proves what we’ve known all along.

“Those areas that have a higher proportion of their housing stock built in the last 10 years, more houses coming through, has seen prices not rise at the same clip as elsewhere,” Olsen said.

Developers say a lack of land and planning constraints continue to hamper new developments.

The analysis also shows that at its current pace, Wellington's median house price is set to head above $1 million by April.