Following the end of its first 100 days in office, the National-Act-New Zealand First coalition government has released its comprehensive housing and infrastructure policy agenda.
Housing and Infrastructure Minister Chris Bishop committed to achieving a house price-to-income multiple of five times income over the next 20 years. At the same time, confirming a targeted action program focused on working with regional councils to unlock more land for residential use, deliver better financial mechanisms for infrastructure projects, fix the rental market, and encourage regional growth while overseeing significant building and construction industry change.
Asset inflation would need to be flat-to-middling over the next two decades to achieve a better equilibrium between house prices and incomes. This would mean more sellers bringing forward their sale and purchase decisions in anticipation of muted market activity.
