A leading economist has challenged the widely held belief of a housing shortage in Auckland, saying if there really is one rents would be soaring - but that is not happening.
The Auckland Council and government officials believe the city is 30,000 homes short and needs to build 13,000 houses a year to meet demand.
Photo: RNZ
However, the Institute of Economic Research says the shortage is actually quite small, with just 8000 new homes required each year and there is a risk of too many homes being built in the next three years.
Principal economist Shamubeel Eaqub told Radio New Zealand's Nine to Noon programme on Wednesday there has been strong growth in house prices, but not much growth in rents.
"If there's just not enough homes for people, there'd be a shortage of not just houses for sale, but also houses available for rent. And we haven't seen that side of it.
"So if you compare and contrast, for example, what's happening in Auckland with Canterbury, in Canterbury there is a real shortage of houses because of the earthquakes they have lost many homes, and both rents and house prices have risen at about the same pace."
Auckland's deputy mayor Penny Hulse says there has been too much focus on whether officials have got the number of new houses needed for the city right, and the council just wants to get on with consents.
Mr Eaqub says Auckland risks building too many houses, but Ms Hulse says it is a long way away from being oversupplied.
"There's a little too bit too much focus on the numbers at the moment. The reality is, we were coming off a really low base of building.
"Building is now starting to pick up, but we're a long way from meeting the demand. In Auckland, we still have people living in overcrowded conditions, living in garages."
