New Zealand housing policy: Continuities and changes

The article reviews the development of New Zealand's housing policy from the early years of the present century when the foundations were laid for an interventionist social democratic‐style housing policy. This policy has increasingly come under pressure through changes within New Zealand's internal and external economy particularly during the 70s. In this decade and in the early 80s changes took place in the pattern of house building, the costs of construction, land and finance; leading to rapid escalations in prices and a growing problem of affordability. The change of Government in 1984 and the initiation of new policies by the Labour administration have produced a radical restructuring of the housing sector removing many of its protections through the de‐regulation of the financial market. The initial results have been rapidly rising interest rates together with shifts in patterns of building and in investments within financial institutions. These changes have led to a sharpening of divisions between those who are already owner occupiers and other householders and have exacerbated further the problem of housing affordability. The article concludes with some speculation as to the likely social and political consequences of these changes in macro‐economic policy.