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Sale of portable cabins booms in New Zealand amid housing crisis

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https://www.theguardian.com/world/2019/feb/25/sale-of-portable-cabins-booms-in-new-zealand-amid-housing-crisis

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The sale of portable cabins is booming in New Zealand, where a housing crisis means hundreds of thousands of Kiwis can no longer afford a home or even a rental.

Soaring property prices in New Zealand’s largest cities and a slow pace of new builds has seen many low- and middle-income New Zealanders struggling to afford basic housing, with some forced to sleep in shipping containers, tents and cars.

Transportable housing manufacturers say their businesses have “quadrupled” in the past few years, with many New Zealanders unable to see any viable solution to their housing woes other than the cramped, transportable homes, which can be shifted into the back or front yards of properties owned by family or friends.

Shane Savill, director of Dream Time Cabins, said people unable to afford traditional housing now make up the majority of his clients, and business had increased 40% each year since he started the company five years ago, spreading from Auckland to the regions.

“The housing crisis is fuelling the demand, people can’t afford their own home, but they can afford a reasonable amount of rent per week so they put a cabin on their mum and dad’s property,” Savill said.

“I believe the regions such as Whangarei, Hamilton and Tauranga are also now experiencing high demand.”

House Me national sales manager Bryce Glover told RNZ that his company’s production of transportable homes had quadrupled in the last three years, and while the housing crisis was the main driver, the trend for tiny homes was also contributing.

“There is no rule of thumb, we are dealing with all walks of life, and all different suburbs,” Glover told RNZ.

New Zealand house prices are among the most unaffordable in the world, with Auckland the seventh most expensive city to buy a home, and all three major cities considered “severely unaffordable” by the latest Demographia international housing affordability survey.

The Labour coalition government led by Jacinda Ardern were elected on promises to tackle the housing crisis, but the government’s flagship affordable housing scheme, Kiwibuild, has suffered numerous setbacks, and last month announced it would fall short of its target to build 1,000 affordable homes by June – and only manage around 300.

Kiwibuild aims to build 100,000 affordable homes in 10 years, and Ardern has defended the scheme, saying although the short-term targets have been scrapped, the long-term goal will be reached.

Alain Bertaud, a former World Bank principal urban planner, said despite New Zealand being an otherwise “exceptionally well-managed country”, its housing market was in a state of crisis. He said the government’s efforts were being closely watched because they were broadly following global best practice in improving housing affordability.

 

 

Edited by PeanutButter

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1 hour ago, PeanutButter said:

Alain Bertaud, a former World Bank principal urban planner, said despite New Zealand being an otherwise “exceptionally well-managed country*”, its housing market was in a state of crisis. He said the government’s efforts were being closely watched because they were broadly following global best practice in improving housing affordability**.

* Because housing is not that important.

** New Zealand HTB https://www.govt.nz/browse/housing-and-property/buying-or-selling-a-home/buying-your-first-home/

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We have been able to largely avoid this sort of thing here.......because we Brits are so more adept at squeezing a dozen+ people into nominally 3 bedroom suburban HMOs.  😟

Edited by anonguest

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9 minutes ago, anonguest said:

We have been able to largely avoid this sort of thing here.......because we Brits are so more adept at squeezing a dozen+ people into nominally 3 bedroom suburban HMOs.  😟

Are you sure? Aren't they just the same as the park homes and mobile homes we have all around the UK?

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11 minutes ago, Captain Kirk said:

Are you sure? Aren't they just the same as the park homes and mobile homes we have all around the UK?

Firstly, the comment was tongue in cheek.  Yes we do have park homes and mobile homes - but I suspect not in as big a proportion of the overall housing market, espcially compared with, say, the US.

Secondly, the price/servicing costs for park homes and mobile homes these days hardly qualifies them as 'affordable' options - as they may well have once upon a time been the reason people resorted to them.  Today they are probably as much deliberate lifestyle choice than through no other option. Even other once low cost unconventional housing options, such as houseboats, have become increasingly expensive.

But I do accept, and have long said myself, that IF the staus quo remains then we can fully expect to see Hoovervilles here in the UK before too long.

Edited by anonguest

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1 hour ago, Captain Kirk said:

Are you sure? Aren't they just the same as the park homes and mobile homes we have all around the UK?

Most park homes in the UK are for the over 55's... they used to be quite cheap, but now are quite comparible with a similarly sized brick and mortar home. 

I have a family member who bought one 15+ years ago when they retired. Sold their 3 bed and bought a 2 bed "bungalow", and pocketed a large sum of cash. I must admit the sence of Comunity is great, and now my uncle passed away its quite nice for my Aunt.

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4 minutes ago, Monkey said:

Most park homes in the UK are for the over 55's... they used to be quite cheap, but now are quite comparible with a similarly sized brick and mortar home. 

I have a family member who bought one 15+ years ago when they retired. Sold their 3 bed and bought a 2 bed "bungalow", and pocketed a large sum of cash. I must admit the sence of Comunity is great, and now my uncle passed away its quite nice for my Aunt.

That sounds fantastic

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50 minutes ago, Monkey said:

Most park homes in the UK are for the over 55's... they used to be quite cheap, but now are quite comparible with a similarly sized brick and mortar home. 

I have a family member who bought one 15+ years ago when they retired. Sold their 3 bed and bought a 2 bed "bungalow", and pocketed a large sum of cash. I must admit the sence of Comunity is great, and now my uncle passed away its quite nice for my Aunt.

that's good. having lived in apartment blocks before, you hardly ever meet or know your neighbour

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2 hours ago, Si1 said:

That sounds fantastic

This is what I live in. This is easily the best location I have ever lived. Ten times what we paid would not buy anything as good in the area. 

The building is a load of carp really, I never stop repairing bits of it. But I rather this than anything Persimmon might vomit into my lap were I foolish enough to give them £400k of borrowed money.  

Snags are ground rent (worth every penny to us), and the condition of some of our fellow residents. This time of year the bloodwagon is here every week. Quite a few folk remind me of the end of El Sid where he's dead but they stick him on a horse to maintain the fiction of life.

The LA doesn't like these places. Not only are they low council tax band, many are on CT benefit and are heavy users of services. The reason these are lower proportion of housing than NZ in the example is the above and that bankers don't make money out of them, that I know of. 

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17 minutes ago, Bluestone59 said:

This is what I live in. This is easily the best location I have ever lived. Ten times what we paid would not buy anything as good in the area. 

The building is a load of carp really, I never stop repairing bits of it. But I rather this than anything Persimmon might vomit into my lap were I foolish enough to give them £400k of borrowed money.  

Snags are ground rent (worth every penny to us), and the condition of some of our fellow residents. This time of year the bloodwagon is here every week. Quite a few folk remind me of the end of El Sid where he's dead but they stick him on a horse to maintain the fiction of life.

The LA doesn't like these places. Not only are they low council tax band, many are on CT benefit and are heavy users of services. The reason these are lower proportion of housing than NZ in the example is the above and that bankers don't make money out of them, that I know of. 

Apoligies - El Cid.

The end of El Cid was the sale of utilities to Spain, China, France and Germany if I'm not mistaken.

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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