When exactly did the housing market in NZ (and more specifically Auckland) turn to such crap?
When I moved here in 2002, there were so many vacant houses and it was cheaper to buy than rent. In 2018 that's nothing more than a dream. Prices have skyrocketed and for the majority of people (myself included) there is no way in hell I could afford to scrape together enough for barely a deposit, never mind keeping up with the fortnightly repayments.
Back in 2002, a decent house was $150000-$200000. Even the mansions in Ponsonby weren't much more than $500000. Today a house for $200000 would probably be a hovel! ie, knock it down and build something better on the land! A $500000 house is $450000 for the land and $50000 for the house - WTF? Is land really worth that much?
I must admit I was frustrated by the last Government's admission that there was no housing crisis in Auckland (https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11836445) but even Kiwibuild's so-called "affordable" houses are still (in my opinion) far too much; $650000 for a house? Who can afford that?
I regret not buying a house in the early 2000s but that won't help me now.
Winston Peters said something a while ago about house prices. He said $250000-$300000 is what he would deem affordable (https://www.stuff.co.nz/national/politics/105020637/winston-peters-wants-affordable-homes-for-those-on-living-wage). As much I don't like the guy (he is quite polarising) I'm inclined to agree with him on this one. There was even something in the Herald about house prices being more affordable recently too: https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12107783
I recall New Zealand used to have some of the most affordable housing in the world. So how did it get to this? Not enough houses being built fast enough? Too many immigrants? Absent landlords buying the property and then just sitting on it, not doing anything with it? Houses being bought and sold the next day for a massive profit? Today it seems like you would need a half-decent win in Lotto to be able to afford a house - but it didn't used to be like that, surely?
Note that I'm not trying to point the finger at anyone at all for this situation, just trying to understand how on Earth things got to this point.