National’s approach, slashing state house construction and implementing policies that inflate property prices, isn't just failing; it’s a deliberate middle finger to anyone who isn’t already a property owner.
In 2024, the government proudly announced a “streamlined” housing strategy, which translated to gutting funding for public housing and slowing new builds to a trickle. According to recent data, state house construction has plummeted by 40% since 2022, with only 1,200 new units completed last year, all of which were funded by the previous government.
Meanwhile, private sector builds are stagnating, hampered by National’s deregulatory zeal, which has enriched developers but done zilch to increase supply. The result? A housing shortage so acute that Auckland’s median house price has surged to $1.4 million, and rents have spiked 12% in 18 months. For the average renter, that’s $150 more per week...money most don’t have.
National’s excuse? “Market efficiency.” They’ve doubled down on tax breaks for property investors and loosened rules for speculative developments, claiming it’ll “unlock supply.” Bollocks. These policies have turbocharged demand from cashed-up landlords and overseas buyers, while Kiwi first-time buyers (already crippled by stagnant wages and 7% mortgage rates) are left out n the cold. The government’s refusal to rein in investor tax loopholes or introduce a capital gains tax is a choice, not an oversight. It’s a choice to prioritise the wealthy over the desperate.
Then there’s the gutting of tenant protections. National’s rollback of Labour’s rental reforms, namely no-cause evictions, has left renters at the mercy of landlords who can jack up prices or kick them out on a whim. Stories abound of families forced onto the streets or into cars as rental stock dwindles. The government’s response? A shrug and a vague promise of “more consultation.” Meanwhile, their cuts to social services mean homelessness is spiking.
On Thursday, RNZ reported:
This study also picked up potential signs of landlords inflating the rents for tenants receiving subsidies. This is known as "subsidy capturing". On average, middle-income tenants receiving the accommodation supplement paid NZ$539.40 per week in rent in 2023. Non-recipients paid $502.90. That's a 7.3 percent difference.
Further research is needed to determine whether this discrepancy is due to rent inflation or differences in housing quality. But the finding aligns with international studies showing that subsidies can unintentionally drive up market rents.
If landlords are capturing part of the subsidy by increasing rents, then the benefit meant for vulnerable tenants is being diluted.
First-time buyers aren’t faring any better. National’s scrapping of shared equity schemes and their half-arsed “infrastructure funding” has left councils unable to support new developments. The much-hyped Fast-Track Approvals Act has delivered luxury apartments for the elite, not affordable homes for the masses. Kāinga Ora, once a beacon of hope, is now a shadow of its former self, starved of funds and ambition.
This isn’t incompetence; it’s class warfare. National’s policies are engineered to keep property prices sky-high, protecting their donor base of developers and landlords while screwing over everyone else. Renters and first-time buyers deserve better than this rigged game. It’s time for a government that builds homes, not excuses...one that puts people over profits. Until then, the housing crisis will keep burning, and National will keep fiddling like nothing's wrong.
