How can we shape the future of affordable housing, NZ?
We need more ambition to effectively and equitably solve Aotearoa NZ’s housing crisis.
We encouraged others to provide feedback to the recent consideration by the NZ government on our Nation’s future. The Government released a policy statement (GPS-HUD) which invited comment to 30 July 2021.
Our submission in summary emphasized approaches which will give more diversity in our housing market. Of particular importance for us, secure alternatives to renting as affordable homes.
Forever Affordable Homes (FAH) are broadly supportive of the direction set out in the Government Policy Statement-Housing and Urban Development (GPS-HUD) discussion document. FAH is concerned however about its limited ambition. The document’s vision treats the housing sector as an ecosystem, rather than a collection of individual houses which seems to have been the approach of previous policies. However, more work needs to be done to truly set a template for meaningful changes to improve our housing system.
In particular, the GPS-HUD needs to be truly aspirational in considering how different our housing system could be into the future. We should not shy away from radical change or bold policies to address parts of the sector which are not meeting our needs. As identified in the discussion document, the GPS-HUD must “[validate] a variety of different housing and urban needs and beliefs about housing.” Our current housing system caters to a very narrow perspective of meeting people's needs and preferences.
Submissions on the discussion document closed at the end of July. This post gives an outline of what we submitted, and what we hope the final GPS-HUD will include.
Why is the GPS-HUD so important?
The GPS-HUD sets the government’s long term vision for Aotearoa New Zealand housing policy. The GPS-HUD needs to have clear and measurable goals along with expected outcomes for our housing system. As the housing crisis worsens, multiple generations of kiwis are finding themselves locked out of the housing market, and forced into expensive and/or unsafe accommodation.
To solve this wicked problem, the government needs to clearly identify which solutions are available. In addition who to engage with to ensure these solutions are possible.
What does the discussion document do well?
The GPS document identifies four outcomes and six focus areas on which the government bases its housing policy. These are positive and show a shift in thinking. Previously, our housing system has been perceived as a collection of isolated financial assets. Now, housing is being recognised as an ecosystem which is vital to our people’s wellbeing. The proposed outcomes clearly show this shift in priorities:
Thriving communities
Wellbeing through housing
Partnering for Māori housing and urban solutions
An adaptive and responsive system
The six focus areas show which areas the government needs to direct most action towards:
Ensure that more affordable homes are being built
Provide homes that meet people’s needs
Support resilient, sustainable, inclusive and prosperous communities
Invest in Māori-driven housing and urban solutions
Prevent and reduce homelessness
Re-establish housing’s primary role as a home rather than a financial asset
The messaging in the discussion document shows there is a genuine desire to bring Aotearoa out of the housing crisis and build a resilient system. In particular, the focus areas will be essential foundations for good policy. Encouragingly, the government seeks to reduce speculative investment in the housing market, diversify the housing market with more varied tenures and housing types, and to take a more active role in ensuring the supply of safe, affordable homes.
What needs to be added to the final GPS-HUD?
While the discussion document envisions a housing system which is more resilient, diverse, and affordable, there is limited ambition in the document. Particularly concerning is how engagement is proposed to achieve the desired outcomes.
The discussion document identifies that “the pathway to wealth and financial wellbeing through housing is now largely only accessible to those with access to existing private capital.” It goes on to prioritise working with investors and developers to nurture more diverse investment streams that deliver more housing. It makes little sense to prioritise engagement with those who are already benefiting from our broken system when trying to achieve dramatic change.
Additionally, the discussion document does not recognise collective housing nor that housing affordability for NZ should be forever. The government needs to recognise the benefits of alternative tenure (for example, co-ownership) and set a housing affordability target including how it is measured for households. In our submission to the GPS-HUD, we suggested it include the following points:
Set a goal for lower house prices
The discussion document does not include a goal of lowering the cost of housing. The government hopes to see an overall increase of “affordable” housing yet there is no definition of affordable in the discussion document. Most “affordable” housing is already out of reach for the working-poor, particularly in Auckland. The government needs to commit to policies that lower the overall cost of housing in Aotearoa. We recommend affordability is defined as median housing costs are less than 30% of the median income. By having clearly defined and measurable definitions of affordable, the government will need to develop policies that lower the overall cost of housing in Aotearoa.
2. More support for alternative tenure models (collective housing)
The discussion document makes passing reference to alternative tenure models once, proposing to remove barriers to establishing them. No definition is provided. It is assumed alternative tenure models includes collective housing. These being Papakāinga, community land trusts, co-operatives and co-housing. Disappointingly the discussion document does not foresee an increase in market-share of cooperatives or any other type of collective housing tenure. FAH wants immediate active and enabling resourcing for the emerging collective housing sector.
3. Use Inclusionary Zoning to create more affordable housing supply
Inclusionary Zoning (IZ) as a powerful tool to provide a pipeline of affordable housing is missing any mention in the discussion document. IZ requires that a certain percent of new developments over a certain size allocate land, cash or completed homes to social and affordable housing. FAH wants to see the government genuinely adopt IZ to incentivise and mandate affordable housing. Used with success in Queenstown, IZ could be used in other stressed parts of Aotearoa to increase the amount of affordable homes where they are needed.
4. Target intervention to prevent welfare housing dependency and a pathway out for the working poor (lower end of intermediate housing market)
The discussion document proposes primarily engaging with private developers, the community and social sector. This reinforces the status-quo of engagement. Collective housing can provide housing options which sit between that provided for by Community Housing Providers and the private sector. Importantly acting as a secure and affordable step between socially-assisted housing and private rentals. FAH and similar organisations including THIS need to be at the table to ensure more secure and diverse housing is built in Aotearoa.
5. Support Forever Affordability in promoted housing schemes
The government needs to ensure the housing market is resilient and sustainable. Long term affordability needs to be embedded in our housing system. The FAH model ensures perpetual affordability through foundational structures. We’d like to see the government embrace available and internationally proven housing models as a key tool to ensure perpetual housing affordability.
6. Include a 5th outcome
FAH suggests an additional outcome - Partnering for community led housing solutions.
The government needs to look to create more enduring partnerships with “third sector” - community led housing (by that we mean individuals within the community forming a collective) . In Aotearoa, community housing is most strongly associated with supplementing the public/social housing supply. Creating more enduring partnerships with Community Housing Providers and collective housing suppliers will enable more diverse developments to serve a wider range of people. It will also allow for better engagement with those in housing need, who are commonly excluded from the design stages of housing developments and subsequent operation.
Early feedback via direct contact shows encouraging signs that collective housing is being considered for inclusion in the final GPS-HUD. No public feedback on submissions has been released at the time of writing.
We understand that Ministerial sign off will be required before the final GPS can be released.
FAH will continue advocating for the growth of forever affordable housing in Aotearoa, primarily through working to deliver it. The sooner that this sector is formally recognised, the sooner we can meet the demand for this type of housing, and replicate success stories seen in Europe and Australia.
Written by Devon Sanson and Imogen Schoots
