KiwiBuild to lift house construction investment
The Government’s KiwiBuild initiative will deliver 100,000 affordable houses over the next 10 years, giving hope to first-home buyers and addressing New Zealand’s housing crisis, Minister of Housing and Urban Development Phil Twyford says.
Treasury forecasts show that KiwiBuild will boost residential construction investment by 10 per cent by 2022.
“The latest forecast in the Half Year Economic and Fiscal Update shows an extra $5.4 billion of residential construction investment will take place over the next four financial years, largely as a consequence of KiwiBuild,” Phil Twyford says.
“Ministry of Business, Innovation and Employment projections under the previous National Government had shown the number of houses consented would stall and start to fall in coming years. This Government is focused on turning that around.
“Through KiwiBuild and policies to drive speculation out of the market, including the ban on non-resident foreign buyers, the Government is delivering a more stable housing market.
“Wages are forecast to grow faster than house prices for the first time since the global financial crisis, and interest rates are expected to remain low. Home ownership will become more affordable for New Zealand families.
The Government will make these forecasts a reality by:
- delivering 100,000 affordable homes through KiwiBuild
- building more state houses, rather than selling off the ones we have
- ensuring there is enough skilled labour, through our immigration settings and training initiatives
- freeing up land supply
- enabling infrastructure financing
- enabling higher productivity in the building industry.
“The Government’s housing package will deliver more affordable homes, more state houses, improve the quality of rentals and security of tenure, and tilt the balance in favour of homebuyers, rather than speculators,” says Phil Twyford.