The New Housing Squeeze…

 

In the July issue of this newsletter I put the case for a looming building shortage in Whangarei. I said that the population had caught up with the available housing supply and from July on there would be an increasing shortage of new dwellings unless Whangarei started building more homes. We build about 350 per year but probably need about 1000.  The positive news is it looks like we are  building more homes. I pass on the following recent conversations, which while not proof of the rise in building activity, are certainly anecdotal evidence for it.

  • I spoke to a well know local developer this week. At the beginning of this year he had 12 sections in one subdivision available. These sections had been on the market for over 7 years. He sold 2 in the first half of the year. In the last two months he has sold 8 and the remaining two both have people swinging on them.
  • I spoke to a couple who are building once they sold their house. When they first had plans done there was a choice of builders available. They have now sold their house and can’t find a builder to start. They are going to find temporary accommodation until a builder is available next year
  • I spoke to a couple who are doing a kitchen renovation. The company doing the work has 4 months’ work lined up and has turned down over 20 more jobs because they just don’t have the resources to cope.
  • I spoke to a popular digger operator to get some estimates for some sections. He told me that if they want the work done it would have to be sometime into the next year because of the work he already has lined up.

So it looks like the housing supply is picking up but this will be limited by the number of tradesmen who can do the job and when they will be available. Building prices are definately going up.

Meanwhile the stream of Aucklander’s’s migrating over the Brenderwyns continues unabated and is being joined by a new trickle of migrants from Hamilton and Tauranga.

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