Affordable Housing
Affordable housing has become a very fashionable idea recently.Just like
taxpayers propping up low wages,affordable housing is only needed because ,in
many places,the private rental market is out of reach for many tenants.
The
New Zealand Productivity Commission has stated that the Accommodation
Supplement paid to landlords,costs $1.3 billion annually.While this subsidy
reduces the pressure on low income households,the bottom 20% of households
still pay more than 40% of their disposable income on rent.It has also be noted
that any landlord reduction in rent,will largely be offset by reductions in the
accommodation supplement,this will not make a tenant better off.
For a growing number of people,renting is the only potion.Political
parties seem to have a pre-occupation with home ownership but the real
challenges are to be seen in the private rental market.One of these issues,is
the withdrawal by central government in providing state housing for the growing
number of families who need low cost rental accommodation.Any reform of the
housing market has to help tenants by
offering them an affordable rent,and by increasing the state housing stock.
Kevin Reilly