The “Free Market” Laissez-faire model is definitely not working with housing in NZ. The current situation proves that the government needs to be very active in building homes for the lower end of the market. A high level of home ownership has many benefits for a country.
https://www.nzherald.co.nz/business/forever-home-the-nation-wide-economic-benefits-of-owning-a-home/SQAQQTNWZ42PLE3AZXBX4MQCUE/
The nation-wide economic benefits of owning a home.
Getting 2000 people out of a rental into their forever home could save the Government $17.5 million over 15 years.
The findings are part of a trio of research papers released today examining social and economic costs of renters versus those living in their own home.
It suggested getting people into their own home could alleviate a number of issues, such as ill-health linked to poorer quality rentals and a lack of community engagement among tenants that could be a factor in criminal offending, and thus save the Government spending on health and corrections.
One study, carried out by Business Economic Research Ltd (Berl), estimated helping renters move into their own home could save millions in taxpayers dollars over time.
"Moving people along the housing continuum reduces the long-term liability to the Crown, improves household outcomes, builds communities and is morally and fiscally the right course to take."
A second piece of research, an analysis of international studies carried out by the Family Centre Social Policy Research Unit, supported Berl's findings.