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Guest Post: Declining house prices are killing our economy
['David Farrar', 'Hugh Jarse', 'Tauhei Notts']
Kiwiblog
The long rise in New Zealand house prices wasn’t just a social problem waiting to be corrected.
For roughly four decades, from the early 1980s through to around 2020 or 2021, New Zealand house prices followed a remarkably predictable pattern.
But it does mean that the simple story – house prices rose, therefore home ownership was destroyed – is wrong.
First-home buyers may be told they’re getting relief, but the wider economy is showing the other side of the ledger.
The real risk isn’t simply that house prices have fallen – markets rise and fall all the time.