Originally Posted by
elZorro
If that is all correct, then why has the market failed to produce more affordable homes? Yesterday I was talking to an Aucklander who wants to leave town, they're quite able to, because the land they're living on is valued at about $1.8mill, even though the old house on it would probably be bulldozed. Even divided up into four homes, which won't go down well in that suburb, the start price on the land alone would be $450,000. That's the market that Kiwibuild has to surmount before they can provide affordable houses, and it's all about purchasing power and building at scale. It doesn't have to be a cheap-looking development.