Homes, Costs and Affordability: Then and Now
I was born in Auckland to baby-boomer parents. In 1972, they bought their first home in Peary Road, Mt Eden for $15,000 on an income of $4,400 per year. After living overseas in Africa and then the United Kingdom, the five of us, now my parents, myself and two younger sisters returned in 1988. After then, I always wondered why our second stint of life in New Zealand made the statement ‘the grass is greener on the other side’ true when life expectations commonly run the other way.
The answer eventually came out in a conversation I had with the penultimate North Shore City Mayor and Auckland City Councillor, George Wood, 25 years later. It was the spaciousness of the city, literally the predominance of gardens, separation between each home, lack of high rises, all day sun and the access to the outdoors in city and in the rural areas surrounding Auckland that changed my perspective and gave me a new focus on improving my education. Seeing the terraces of inner city Birmingham and, in general, the opposite of what I saw in Auckland, it was as if our quality of life had improved overnight.
As I sat discussing this realization with Councilor Wood I urged him, don’t let our city return to the despondency I saw in parts of Birmingham. I am grateful to say that his voting record, along with others in the Auckland Council has reflected our conversation that day and I hope we continue to share the value that all New Zealanders, including those who call Auckland home, should have their own path to ownership in a way that is sustainable from their income, skills and knowledge.
Like some of my fellow Aucklanders, our home has risen to a value that is vastly more than we could ever afford to buy now, if the two $1 million plus sales in our cul-de-sac are anything to go by. While we have been beneficiaries of Auckland rising house prices, it is with considerable disquiet I observe that rise, where the median house price last year is approaching $800,000 but wage growth has not more than doubled over the same time period. The New Zealand Herald's Business Editor at large, Liam Dann, recently wrote “my growing unease at the economic future for my children and the scale inequality in my community is starting to weigh heavily”, is one I share and real alarm is settling in. Why?
In my discussions with fellow Aucklanders in private and public forums I see those who argue that intensification is the only way to bring back housing affordability, to those whose focus is on using the capital gain to amass their own wealth through risk-taking with, relatively speaking, a small effort, through to a group of people who genuinely want housing to be affordable for all, regardless of your earning circumstances in life. Let me be clear, I am not expecting that the next generation growing up now should have anything vastly different to what my parents had, save for genuine affordable advances over the last 50 years. I am also not against the provision of rentals, provided that other residents who are ready to buy are able to.
Is this the future for some of our next generation?
What I think will happen if we as a city do not make a concerted effort soon, is a regret that many of our next generation will eventually adjust to living in a standard and size of accommodation that is not far off what you see in the photo above, from Manchester in England, delivered at unaffordable prices. I must stress that this is different to affordable apartment living and healthy living standards that I expect in our country. For me, that is an distressing outcome, and I am more than willing for my home’s value to return to around $350,000 if this means the next generation, and those in the current generation who cannot buy despite their diligence, are able to buy their own home. I am concerned at our social cohesion if we continue down this path of expensive property with no regard for those who are trying, or who have given up.
Before looking at solutions, it is helpful to visually look at what I believe our vision for a city should be. The home shown below represents what I believe is a fair option among different housing styles, to start with in life.
A way of life fast passing most people in Auckland?
Purchased for $155,000 in Omaha NE, in 2007 before the GFC in the United States and sold for $162,500 in 2013, this property provides a back yard on a 1000m2 site, 3 bedrooms, 2 bathrooms and 2 living areas. The population of greater Omaha is around 1 million. I would even accept 1 bathroom and 1 living area as a reasonable start. If you prefer an apartment, then I also believe that should be available as an option, provided it costs less than a single dwelling on a single site. These sorts of developments, at prices that are fair and affordable, are the standard of living that I want all Aucklanders to return to. A city which provides all sorts of styles of residential living, a quality of life that was so refreshing and peaceful when I returned in 1988 and at a price that individuals and families can afford. This stands in contrast to the city I see today.
Liam Dann's closing remarks echo my thoughts too. I have personally lobbied the Mayor, Deputy Mayor, Mayoral candidates, Councillors and candidates for Council, written letters, emails, made phone calls, attending public meetings, stood for public office, made my submissions to Auckland’s Long Term Plan and the PAUP, and even addressed my concern to my church. Most people do listen, but somehow the solution remains beyond our grasp. In short, our politicians will only go based on their perception of where people have already gone and that is why I believe that is because more, indeed most, of us need to stand up and make an effort. Do we want to be a society that provides for everyone, provided they make their own effort, or is the Auckland that I returned to in 1988 from England forever gone?
