NZ votes ‘yes’ to housing ponzi economy

In the months leading-up to Saturday’s New Zealand election, various Roy Morgan Research surveys revealed significant voter angst over housing, specifically concerns about affordability/increasing prices as well as homelessness/housing shortages.

Labour went to the election with an excellent housing platform that addresses both supply and demand with negative gearing reform, banning foreign buyers of existing homes, tighter capital gains taxes, removal of urban growth boundaries, plus bond financing for infrastructure. It also outlined a plan to reduce immigration by around a third in order to relieve chronic housing and infrastructure pressures.

Given the National Government’s epic failures on housing, as well as recently thwarting legislation that would have removed Auckland’s urban growth boundary and freed up density controls, I was expecting that Kiwi voters would swing to Labour and thrust them into government.

However, the latest results from Saturday’s election shows that National has dominated the vote; albeit not by enough to gain the 61 seat majority required to form government (it effectively sits on 59 seats with the support of ACT).

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