KEY POINTS:
Considerable attention has been given to Aucklanders' decreasing access to affordable housing. Some of the suggested causes, such as high levels of personal debt arising from readily available credit, undoubtedly contribute to the problem.
However, a simplistic argument has entered the debate in the form of criticism about restrictions on the extent to which Auckland can expand its urban margins.
The argument, which is inevitably raised by those associated within the property development sector, offers a simplistic "solution" to Auckland's housing affordability woes.
Its proponents argue that the problem will be solved by simply removing the metropolitan urban limits (MULs) that restrict expansion.
However, Auckland Regional Council research shows that there is at least 16 years capacity for residential growth within the present limits, which strongly suggests that the limits don't strongly contribute to housing affordability.
It is essential that regional land policy promotes sustainable social, economic and environmental wellbeing, so the regional council regularly monitors the land capacity available for residential and business growth.
Although the region's growth strategy promotes development within the urban area that is focused in town centres and linked with passenger transport, the urban limits have been extended five times since 1999 to add nearly 1500ha of land for urban development, and the ARC will be considering further applications for change in the near future.
As other commentators in the debate - including the Government - point out, housing affordability is a complex issue that goes beyond house prices to people's ability to pay for housing of all kinds. Contributing factors include labour market conditions, finance availability, and demographic factors such as population growth, migration, and change in household composition
There are also the issues of location and liveability - people are attracted to cities with a developing economy and attractive environment, employment and leisure opportunities.
And there are New Zealand investment patterns which are focused heavily on the housing market and a flow-on effect from the coastal property boom, which has in part been driven by interest from overseas buyers.
Land supply - including urban planning policies and land-banking by private investors - is naturally an issue and construction costs and development contributions such as property market structure and the associated roles of central government and local councils.
The Auckland Regional Council supports the central Government inquiry into housing affordability in New Zealand, which addresses the issues mentioned here and encourages objective debate on the full range of possible causes and solutions.
There is no doubting the seriousness of the housing affordability issue. Research by the Treasury and others shows that declining home ownership and housing choice is likely to have negative implications for lower socio-economic groups, as well as for the region's residents as a whole.
Home ownership is important as it leads to greater family stability, continuity of educational opportunities and connections with the wider community.
Given the spare land capacity contained within them, it is unlikely that removing metropolitan urban limits will provide a sudden supply of affordable homes.
Instead it will probably cause more problems than it solves.
Increased urban sprawl brings with it increased demand for transport, water, waste removal and other types of social and physical infrastructure. Their associated costs are inevitably borne by the wider community through rates rises, traffic congestion, environmental degradation, etc.
In Sydney, development levies of about $100,000 a title reflect the additional infrastructural costs for new housing on the city's periphery.
Urban sprawl that results in dormitory suburbs at great distance from employment and services negates the benefits of cheaper homes through higher transport costs, wasted time and poor access to services and employment.
Ironically, this will be felt most by those who least can afford to own their own property - those on low and fixed incomes.
A Melbourne study showed that low-income residents on the city's outer edges spent 40 per cent of their income on transport to and from work.
The metropolitan urban limits are a mechanism for co-ordinating Auckland's growth and avoiding such human and economic costs.
This is because the growth strategy encourages intensification in and around town centres where the diversity of housing types, employment and transport needed to cater for our changing households can be provided.
Research by the independent Business and Economic Research has shown that an increase in city density promotes greater economic productivity and higher wages. This is further enhanced by effective public transport systems.
Housing affordability is a complex issue which cannot be resolved by simplistic quick fixes that could end up making the problem worse.
* Paul Walbran is chairman of the Auckland Regional Council's regional strategy and planning committee.
