New Zealand’s public housing waiting list hits a 10-year high as Labour and National blame each other

Figures released by the Ministry of Housing and Urban Development show that, by the end of May this year, the number of households on the public housing waiting list had reached 11,655, a 10-year high.

The number of households on the list has more than doubled in just the past two years, with the biggest increase coming last year.

Faced with the rapidly growing number of people waiting for public housing, the Labour Government says many of the “hidden homeless” did not come forward to seek government help under the previous National government.

National counters that Labour has been too hard on rental property owners, causing landlords to leave the market and rents to rise, leaving tenants unable to afford them and with no choice but to apply for public housing.

Of the 11,655 households waiting, 9623 have a priority rating of “A”, meaning their need is most urgent.

Although the Labour Government added 1780 public homes last year, and the number being built was 9 times the figure for 2016, supply still falls far short of demand.

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In May, 1974 households applied and joined the waiting list, but only 589 moved into public housing over the same period.

Former Housing Minister Phil Twyford said demand for public housing usually increases as the cold winter arrives, when substandard homes can harm children’s health.

But National’s housing spokesperson Judith Collins criticised Phil Twyford’s policies, saying they were the problem.

Judith Collins

She said factors including the risk of a capital gains tax and tax on investment properties sold after being held for less than 5 years had driven more landlords out of the rental market because they had had enough. “These landlords are simply mum-and-dad property buyers approaching retirement. They feel running a rental property has become too difficult, so they are leaving.”

Figures from the Ministry of Business, Innovation and Employment show that, by May this year, the national average rent had risen by NZ$21 to NZ$471. Rents rose by NZ$19 in 2018, NZ$17 in 2017 and NZ$23 in 2016.