Council Economist tells it like it is

So, Auckland Council’s own Chief Economist gets it but the rest of Council is going to continue to act like a bunch of stubborn old stooges, and stick with the impossible dream of a building a compact city.

Auckland Council’s plans for higher density housing cannot succeed unless the city also expands further into the countryside, says the council’s chief economist.

Chris Parker said the only way to contain Auckland’s runaway house inflation – up $70,000 last month to $820,000 on a median price house – was to open up more rural land to relieve price pressure on a “dysfunctional” urban land market.

The council’s flagship compact city plan, based on more people living in apartments, terraced houses and townhouses within city limits, was necessary but unable to work by itself.

“Intensification won’t do it – not alone, it’s got to be part of a package,” Mr Parker told the Herald in an interview for the Home Truths series.

“Intensification increases the opportunities for what can be done on each piece of land and it increases the value of land underneath. The hope is that you can spread more houses on top of it, but the problem is we’re in a race we can’t win.  

“The rate of increase in land [prices] is always faster than the rate at which we can build houses on top.”

Mr Parker said public opposition to intensification made the process more difficult, as this further delayed the introduction of high density homes while land prices kept rising.

He described Auckland land prices as a vicious cycle: speculation caused land owners to hold off selling, which pushed demand “through the roof”, increasing prices and creating further speculation.

The only way to break the cycle was “good old-fashioned, school kid level economics, which is simply to increase the supply of rural land into the urban land market“.

I don’t even know Chris Parker and I like him. He’s also refreshing and he’s brass-balls brave. It’s great that he can spot a dead horse.

But I doubt the city planners and the big brass will listen to Mr Parker.

Those responsible for the compact city utopian crap sandwich don’t care.

They just think they know what’s best for everyone and they believe it is their right to control how we all live. ‘We know best’ is their mantra.

 

– NZ Herald


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

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