Respected economist Arthur Grimes, working for Motu, has released a study saying the biggest single factor hobbling the building sector’s ability to meet demand in Auckland is land availability.
And we all know what happens when supply can not meet demand – prices skyrocket. Bollard is on a mission impossible. Government policies are working against monetary policy, not in favour of them.
The researchers found that more than three-quarters of the rise in house prices can be explained by higher land costs with construction costs much less of a factor.