Thought provoking report by CPAG Housing experts
Shortage in affordable rentals and Immigration spike as top causes for the housing crisis in NZ.
In the research that was presented by Child Poverty Action Group (CPAG) housing experts, Greg Waite and Alan Johnson, in the latest CPAG Election 2023 series webinar, there is strong evidence that maintains that there is a stock issue for affordable rentals for low income, minimum wage earners. We may have seen an increase in new builds in our respective neighbourhoods, but they are targeting high-income earners.
Less available affordable rentals:
· With an 8% population increase from the period 2018-2023, affordable rentals available for low-income families shrunk by 3.5%
· Available affordable rentals for the middle-income earners also shrunk by 1.3%
Immigration spike
· Net migration for the year to June 2023 sees over 86,000 new entrants in the country
· The new emmigrants would yield an estimated additional demand of around 29,000 dwellings
Tepora Apirana, Lifewise Regional Manager - Bay of Plenty also spoke about how Lifewise employs an iwi-led collaborative model in the implementation of the Housing First programme in Rotorua since 2019. The significance of keeping ties with Ngāti Whakaue as housing providers ensure that the needs of the most vulnerable whānau in the Bay of plenty are met as Lifewise's mahi is centered on restoring families and keeping them together. Tepora shared the story of Theresa Shaw (video attached) who came through the Housing First service at a time when she struggled with drug addiction. Theresa's story demonstrates that Lifewise provides a safe and non-judgmental space where whanau can heal and be empowered, to be able to show compassion - to share the aroha and respect to the community that we serve. However, we acknowledge that as a charitable institution that helps to alleviate homelessness in the community, Lifewise cannot solve the housing crisis if the government does not do their share in increasing the supply of affordable homes.
Continuous increase of households in waiting list
Despite the Government's efforts to build its way out of the current shortfall in affordable rental housing, the public housing waiting list has stabilised at around 25,000 households to date with 43% of them include children. Almost 6,000 households are currently living in transitional housing - up from 4,400 in June 2021. Housing operating subsidies have reached $4.1 Billion Annually including $2 Billion in AS grants and $1.5 Billion in income related rent subsidies. CPAG proposes that the population of state-owned social rental housing expands from the current 3.2% of the housing stock to 4% by 2030 and 5% by 2040. The build rate should be tied to the immigration policy setting to ensure people are not left homeless by rapid immigration. (attached Graph that shows the continuous increase in the number of households in government state-owned houses waiting list. Source: https://www.cpag.org.nz/media-releases/election-2023-a-warm-safe-dry-house-for-every-child#:~:text=There%20are%2024%2C000%20households%20on,through%20income%20related%20rent%20contracts.
What is the call to action of CPAG to the government?
1. A recognition that public rental housing has more than a residual role in the housing market - as the housing of last resort for the poorest New Zealanders.
2. An expansive ambition to lift the proportion of the housing stock which is owned by the State or Agents of the State as affordable rental housing.
3. A long-term plan to deliver this proportion which is based on a 10-year funding, development and procurement programmes.
4. Transparent and long-term partnerships with iwi/hapu, NGO's, local councils and developers/builders to build, operate and sometimes own this housing stock
5. A bi-partisan commitment to these programmes as recognition of affordable rental housing as a critical part of public infrastructure.
Watch the Webinar here: CPAG: A WARM, SAFE, DRY HOUSE FOR EVER CHILD – WHAT NEEDS TO BE DONE?