How interesting that the media has rediscovered that housing is a problem in this country. I say “rediscovered” because, of course, this was a hot topic between late 2008 and late 2017. After that time, the debate cooled considerably, even as the market continued to heat. I wonder why.
If I were cynical I’d observe that this rediscovery has taken place at a time rather convenient to the Labour Party, now that it’s safely ensconced for a second term.
There is some excellent commentary out there – including on this site in recent days – about real and imagined policy responses to New Zealand’s housing problems. Some have focused on the Reserve Bank’s manoeuvres in relation to bank lending (that is, lending to banks as well as further LVR restrictions between bank and borrowers). Others have focused on the issues of supply, along with costs, delays and uncertainty associated with the RMA.
It’s a good discussion but I’m also interested in what the issue is revealing about the government’s general unwillingness to take responsibility. And, by extension, its hypocrisy.
As always, the clue is in the language of communicator-in-chief, Prime Minister Ardern.
She describes rampant housing costs as being the product of a “perfect storm”. The metaphor is convenient, of course, as a storm is a thing that’s unpredictable and outside anyone’s control.
This is also an interesting way to think about the problem of housing affordability because it’s rather different to the attitude of certain Opposition MPs prior to the 2017 election. Ardern, Grant Robertson and (laughably enough) Phil Twyford were chief among them.
The contrast between past and present is interesting. This lack of responsibility even extends to a sense of victimhood, with Ardern keen to portray her government as seeking shelter from the storm.
According to media reports, she is citing “the nation’s ongoing housing crisis” as one of the reasons for “the hot property market”. That’s like saying World War One was one of the reasons for the First World War.
To change the narrative in this way, Ardern is re-writing recent history. She now has the gall to argue that the world is “vastly different” now “to a time when previous generations found housing relatively more affordable”.
How convenient to blame the problem on the world at large now, when, not that long ago, the blame lay only at the feet of National ministers and those with foreign-sounding names.
This perfect storm of increasing housing unaffordability “won’t be fixed by a single policy”, Ardern now adds glibly. That may be so but it’s also entirely possible that it won’t be fixed by multiple policies.
Let me finish with one final nail in the coffin of responsible government. After Ardern had listed various reasons (and non-reasons) for housing unaffordability, she added: “All of that is creating pressure. We need to look at ways to continue to ease that pressure, both supply and demand side.”
For one thing, the government doesn’t need to “look at ways” to achieve x, y, z. It actually needs to achieve x, y, z. Imagine if actual beehives operated on the same basis as the Beehive: writing reams of press releases about the importance of honey but producing very little of Pooh Bear’s favourite food.
For another thing, how extraordinary that Ardern is signalling her intention “to continue to ease that pressure”. To continue is to do more of something that’s already being done. The pressure isn’t already being eased; quite the opposite.
And so the government continuing to avoid acknowledging any kind of responsibility is also exactly the opposite of what we need. How long will they be allowed to continue to get away with that?
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