House Problem Growing Worse

Bay of Plenty Beacon, Volume 12, Issue 76, 2 August 1948, Page 5

House Problem Growing Worse

BUILDING RATE TOO LOW: COSTS HIGH

Recent statements from authoritative quarters suggest that the overall housing situation in New Zealand is growing worse and not better. The deterioration is twofold in character. First and worst, the rate of building is insufficient to provide for normal replacement of' houses and natural increase in population and, at the same time, catch up the arrears of housing accumulated during the war and the preceding economic crisis. Second, housing costs have doubled since before the war and a house suitable for a normal family costs more than the average working class family can pay for either on the basis of purchase or through rent. To take the question of progressive deterioration in the supply of houses: about 12,000 houses were built last year by private builders and the State combined. No less than 6,000 are needed to cope with the natural increase of population per year. I

Taking figures from the 1947 Pocket Compendium of New Zealand Statistics as a basis, this leaves about 6,600 to catch up with the arrears accumulated during the war and the depression years (not to mention that New Zealand was un-der-housed even before the economic crisis). In the 16 years, 1930-31 to 1945-46, permits were issued for roughly 74,000 dwellings, i.e., 22,000 short of the 96,000 needed for an average of 6,000 per year to keep up with the natural increase of population.” It is apparent, therefore, that the task of catching up arrears, providing for the natural increase in population, and providing too, for immigrants which the Government is bringing in, is one which is not being coped with by the New Zealand building industry. As for the great increase in the cost of living, even official figures bear testimony to this. The New Zealand “Herald” quotes Mr Skinner as himself admitting that the cost of a house of 1000 square feet would be £lß79—and on top of this, there, would be the price of the land, legal and transfer fees and incidentals. The same paper’s estimate, obtained from Auckland builders, of £2500 as the cost of such a house, is probably nearer the real mark. It is being suggested in some, quarters that a Ministry of Housing should be created with adequate and comprehensive powers, to co-ordinate all housing operations, thus eliminating the present overlapping and confusion which hampers housing operations and makes real planning impossible.