So whats the housing shortage? Lower end, middle end or upper end?
Whats the result that this housing shortage causes?
Affordable housing is where the shortage really lies. I do however think its unrealistic for all people on the lower end to expect to buy affordable housing. Also unrealistic in fact for those middle end people to afford it without lots of savings/sacrificing, and even the odd overtime job. We had to do this to raise enough money for our first home, it was lots of hard work and lots of saving. (The trend nowadays seems people dont want to do this)
There are many houses currently available (not getting sold) which one could argue means there is no shortage. Honestly I could argue against a housing shortage, or for a housing shortage. I am not really sure which to go for.
Throwing a lot more housing into the market probably wont do much, people still won't have the money to buy, and it will just lead to more empty houses on the market.
One thing is certain, there is definitely a shortage of money to buy affordable housing, it makes no difference if you on the lower end, middle end or upper end of the wage scale. The upper end of wage earners do have the advantage, they are normally able to purchase either cash, or with much bigger deposits and less risks for banks.
The real question though is what is affordable housing?
My opinion on that would probably be around the $400k - $500k mark. And yes that means not eveybody is going to be able to afford one, and those that can, generally would save heard to get there.
Edit: My opinions are for outside Auckland.
Another thing I find interesting is peoples opinion on home ownership. Most people don't own their own homes, banks do. People have to serve their debt just like people in rentals have to pay rent. The real issue here then is perhaps not "home ownership", but rather why certain people cannot get the finance. Getting the finance does not make you a home owner, and in fact is far riskier than renting, especially in the current market where a drop in house prices and some interest rate hikes will severely disrupt the lives of many Kiwis. Do we want people at the lower ends exposed to this?