What is progressive residential?
By 2020, New Zealand’s population is set to grow by 9.6 per cent and the number of homes is expected to rise by almost 1.3 million, according to the country’s new population projections.
The country’s population will almost double to 4.4 million by 2030, with Auckland’s population expected to grow more than 10 per cent.
By 2040, New Zealander’s will have a household income of $80,000 a year and in 2040 there will be more than three times as many Kiwis working in the construction industry as in 2000.
More than three-quarters of New Zealanders aged 65 or over have already retired, the most of any OECD country, and in some cities more than half of all adults have reached retirement age.
In Auckland, the proportion of households with a retired person is more than four times the OECD average.
“We’ve got the world’s highest housing demand, but it’s not going to be affordable,” says Pauline Rudge, who is the countrys senior planner for housing policy at the New Zealand Council of Social Services.
“If you’re a retired Kiwi, you’ll still be spending about half of your income on housing.”
She says New Zealand has had a “slightly depressing” housing situation for a while.
“We have a very, very high cost of living, so we’ve got a housing shortage,” she says.
New Zealanders tend to live in suburbs, which are less affordable than the city, and suburbs are increasingly being replaced by new houses.
For example, in 2015, there were almost 50,000 new houses being built in Auckland, compared with just over 50,00 in Christchurch and just over 20,000 in Christs Mountain.
The biggest increase in the number is in Christendom suburbs, where more than 60,000 houses are being built, compared to just over 40,000 last year.
In 2016, there was a rise in the average price of a single-family home in Christ.
In 2018, that increased to $843,000.
But Rudge warns Aucklanders need to make the switch to more expensive suburbs.
“New Zealand has one of the lowest housing affordability rates in the OECD, so if you want to build a house in Auckland you need to spend about $2,000 more to do so,” she said.
There are also rising costs for housing in the suburbs.
Auckland has the highest rate of home owners in the country, with more than 20 per cent of households owning their own home.
Rudge says Aucklanders should start thinking about the long-term implications of their own lifestyle choices.
Rudges plan to increase the number and size of affordable housing units.
She wants to see more people start to live near schools, parks and hospitals, and more people move into the suburbs and into rental homes.
Her biggest challenge will be convincing people to accept the idea that there is no longer room in the city for them to live.
“If you don’t like being in a city, don’t move there,” she warns.
This article was updated on May 29, 2018 to include a quote from the Christchurch City Council.