this post was submitted on 27 Sep 2023
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Vince shows the numbers on how much a person must earn in order to buy a house in New Zealand

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[–] Dave@lemmy.nz 1 points 1 year ago* (last edited 1 year ago)

I'm not arguing it isn't grossly unfair, but I'd like to see the calculations take into account the much higher interest rates there were.

Mortgage interest rates were over 10% for much of the 90's (and over 15% for much of the 80's), which I'd argue the dropping interest rates (in combination with the lack of housing stock) has been a large influence on house prices.

In my view, significantly increasing the housing stock (so sellers are competing to sell instead of buyers competing to buy) would go a long way towards solving this issue. And no private firm building houses has incentive to increase supply to create an oversupply, so it needs to be government led (imo).