Straight talk on the housing crisis
Being someone who detests socialism, I write what I think is true without the constraints of party support. Both National and Labour are socialist parties, and I despise them more or less equally. Its socialism that is at the root of the housing crisis.
I’ve written before about how we got here. To summarise, New Zealand needs to build about 5000 houses a year to keep up with normal population growth by births. Its a number that even with our limited construction capability is do-able.
Immigration roughly doubled the number of people requiring houses over a twenty year period. We should have been building 10,000 houses a year to keep up, but we only built the usual 5000. Over 20 years of high immigration, a deficit of 5000 houses a year gives a current deficit of around 100,000 houses.
So we have this deficit, low interest rates, and housing is incentivised as an investment option whereas most other things are dis-incentivised. Naturally the price of houses has sky-rocketed.
However the bottom line is that New Zealand’s level of immigration has been far too high. The proof of this is not only high house prices but congestion and massive infrastructure overload. Why did we make that mistake. Although not solely to blame, John Key and the National Party had a lot to do with it.
The Global Financial Crisis and the Christchurch earthquake had a massively negative impact on NZ’s economy. To counter this, and save National’s economic reputation, John Key, who was always a globalist anyway, encouraged immigration. NZ’s GDP has thence for some years been driven by immigration, not real economic activity.
So now in 2021 we’re paying the price for this excessive immigration and political pundits all over the place are speculating on what needs to be done to reduce house prices. A change that if it did come about would be profoundly disappointing to anyone who owns a house and sees its value drop.
The truth is there is nothing to be done. Nothing real anyway. NZers will have to live with high prices until supply exceeds demand. Not likely to happen soon with our limited ability to build.
There is one solution. Its being talked about overseas as remigration. It involves sending immigrants and refugees back to where they came from. If they were incentivised to leave, and say 200,000 to 400,000 actually did, you’d see an immediate drop in house prices. If that’s actually what you want.
It won’t happen. It won’t even be talked about. Because doing so is an immediate admission that its all the fault of govt mismanagement. Additionally, all the brainwashing the state has done, about multi-culturalism, about diversity being strength, and all that Orwellian balderdash, would likewise be exposed as fake.
Remigration. You read it here first, because theredbaiter.com is so often the first place you will read of these kind of concepts. At first they’re disregarded as horrifying, but in ten years time, they become real talking points. That’s what will happen with remigration. (even if the SIS start jailing its proponents)