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Palmerston North or Des Moines?

23/01/2018

This post draws attention to a key factor in the housing market, the way in which land use regulations exacerbate the problem. This when the way construction materials are supplied explains much of our problems. However our politicians are fixated on the myth of the foreign speculators, rather than examining the real facts

croaking cassandra

I’m still enfeebled by the last of a bad cold –  three days of Wellington Anniversary Weekend and I didn’t even get out the front door –  so there won’t be much here today. But I noticed that Demographia yesterday released their annual report on median prices relative to median incomes in Anglo countries cities (and a few other places).

As three academics from the London School of Economics put it in their introduction

Before we can have useful debates or even give a balanced assessment of the issues we need good measures. Here Demographia has done wonders over the past decade to focus public debate on the inequity of rising house prices relative to incomes. As Oliver Hartwich in his Introduction to the 13th edition last year said “Demographia’s‘ median multiple’ approach…firmly established a benchmark for housing affordability by linking median house prices to median household incomes. It… is…

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