Affordable housing failure

A mother of two 17-year-old girls forced out of her home by Tauranga's spiralling rental market could be the beginning of a trend, says New Zealand First MP Clayton Mitchell.

Clayton spotted a large sign on a fence, "PLEASE HELP. Mother & 2 17 year old girls will be HOMELESS," and went on to indicate she has good references, and her phone number.


The sign spotted by New Zealand First MP Clayton Mitchell. Photo: Supplied

'With the rising costs of rental properties in Tauranga, families are finding it incredibly difficult to afford homes,” he says.

Clayton was told the home the mother had rented for years had been sold. The new out of town owners wanted to move in, leaving the mother looking for a new home.

But because rentals across the Tauranga have been driven up by housing demand, the search for a new home was proving difficult and the Tauranga mother was feeling desperate.

'We have put this family in touch with a couple of organisations that are trying to assist them in finding a new home. But the reality is that this family, like too many Tauranga families is being forced to look at moving away from Tauranga on their search for affordable housing,” says Clayton.

'Those families that cannot or do not move away, may join the increasing number of homeless on our streets.”

Regional social worker Elizabeth Walsh is also concerned about the growing numbers of Tauranga homeless, saying families, singles and couples are all unable to find accommodation because there's not enough housing and the land and rental values are just too high.

'This is not specific to any demographic as even working families are being affected,” explains Elizabeth.

'Joe Bloggs on the street may have no real idea of the seriousness of this issue, but as a social worker, I'm seeing people affected by this housing crisis every day.”

Elizabeth believes the Government should invest in more overnight accommodation to relieve immediate distress, plus establish caravan parks which could be run and monitored by existing charities already providing care to Tauranga's most vulnerable.

With almost zero available housing and the impending state housing sale, there is little Housing New Zealand is able to do, though not for lack of wanting to help.

WINZ suggests families look at local caravan parks for accommodation and warns them to be prepared to sleep in their cars.

But given the fact that Easter is this weekend, Clayton says caravan parks are likely to be full and can hardly be seen as an option.

'Now more than ever, we need more Government support for our community, not less. The Government should be investing in State housing, not selling it.

'We need to get real, addressing the real problems we are facing in Tauranga and New Zealand,” says Clayton.

34 comments

Sad state of affairs!!

Posted on 23-03-2016 16:58 | By H Krissansen

I really hope this mother finds a home for her family and is not forced out of Tauranga!!!! Seems sad that out of Towners move here and are pushing locals out...


Wow Jed read this ?.

Posted on 23-03-2016 17:10 | By Towball

Exactly my point I was trying to make previously. Thankfully there are real people acknowledging the real issue confronted by all walks of life. What do we keep pushing people away because it suits a few property tycoons?. Where to when those places are parallel to what we have now?. Yes very sour grapes my friend when articles such as this are frequently being addressed by media. That's right your not affected so is not your problem, close sell all caravan parks to aide the portfolio of the GREEDY. Council are all in bed with developers investors for the FINANICAL orgy we witness daily. I support the underdog always have we are a minority with old fashioned values the ones this country was built on.


Clap trap Clayton

Posted on 23-03-2016 17:23 | By Crash test dummies

perhaps of the RMA was sorted properly and perhaps if TCC was not involved in the consent process then all would be efficient and the prices would be half of what they are now.


Free ride

Posted on 23-03-2016 17:42 | By penguin

A good percentage of landlords are simply taking advantage of a housing shortage to raise rents. Some may have mortgages but, hey, look at the low interest rates. Mortgage free landlords are essentially getting a free ride on the back of supply and demand. There is little real justification to raise rentals. And to pre-empt the 'outcry' from some, I have both rented and been a landlord so I have some knowledge of the situation. Kept my rentals below average for the market. The sad part is that I can see Tauranga becoming a mini Auckland and losing a proportion of quality people unable to afford to live here. Do we want that?


Stressful

Posted on 23-03-2016 21:47 | By penguin

A percentage of landlords are simply taking advantage of a housing shortage to raise rents. Some may have mortgages but, hey, look at the low interest rates. Mortgage free landlords are essentially getting a free ride on the back of supply and demand. There is little real justification to raise rentals. And to pre-empt the 'outcry' from some, I have both rented and been a landlord so I have some knowledge of the situation. Kept my rentals below average for the market. The sad part is that I can see Tauranga becoming a mini Auckland and losing a proportion of quality people unable to afford to live here. Do we want that?


Move

Posted on 23-03-2016 22:35 | By Capt_Kaveman

to a cheaper area


Seems sad

Posted on 24-03-2016 03:35 | By davem

that out-of-towners move to Auckland and push locals out too


@ H Krissansen....

Posted on 24-03-2016 05:36 | By sambo's back

so you moved here from where?


What are Families for?

Posted on 24-03-2016 08:57 | By Mackka

Surely if this woman is in such dire straights and she has a family - parents, siblings - then they should help!


Rents

Posted on 24-03-2016 10:18 | By Tyraone

All I can say is BLOODY GREEDY LANDLORDS!!! no respect for good tenants only the $$$$$$$$$ SHAME ON THEM!!!!


Thats a typical response

Posted on 24-03-2016 10:37 | By Towball

From a kaveman and others equally, move to somewhere else bravado. re-locate a whole family and incur some of the following:- Moving costs, Bond,Employment, School Uniforms,Affordability,Location to Schools ...........Really that is a fantastic idea more debit for a person clearly struggling. Obviously the opinion of a landlord or SNOB.


Regional Plan

Posted on 24-03-2016 12:40 | By Kaimai

Isn't this a subtle way to get people to move back to the regions, where rent is cheaper.Can't remember which political party suggested migrants start in the regions ... perhaps CM might like to check.


@ Tyraone

Posted on 24-03-2016 13:34 | By Crash test dummies

Cant see the sense in what you are saying, tenants have it way to good for to long, about time the rents were a bit more realistic.


Amazing

Posted on 24-03-2016 15:59 | By Kenworthlogger

How lots of people assume landlords are all on the cheap floating rate and not still fixed on a much higher rate...


Go JAFFA

Posted on 24-03-2016 16:37 | By Old

Put the cat with the pigeons . The bitter and twisted are out,,,,,,,


Thank you

Posted on 24-03-2016 16:40 | By Old

Sunlive ........Better than going to the movies


sold

Posted on 26-03-2016 15:38 | By NotNat

The house has been sold - nothing they can do, which is very unfortunate. I have recently missed out on several rentals because people from out of town areas (for example and mainly aucklanders) are turning up to their viewings with cash bribes. The landlord even admitted this at one property so locals desperate for rentals are missing out because they are not showing up with cash bribes...and yes, on one occasion this has been admitted to why it was given to someone relocating from Auckland - meanwhile a local lady is made homeless. Good luck to this family and many other local families who are quite literally being Bought out their homes and options.


Reality check

Posted on 26-03-2016 16:34 | By lpm67

I think everyone has forgotten the fundamentals here....its not just the unemployed benefit scroungers facing this situation but decent hardworking families. There are some landlords price gouging due to shortage and others that really do need to charge higher rents to meet mortgages, insurance rates etc. I have worked with some decent hardworking families trying to find affordable accomodation...it simply does not exist here anymore and the caravan parks are almost always full, even the fleapit in Te Puke. We seem to be able to get Housing NZ and WINZ to house immigrants but cant even squeeze our people onto wait lists???


Real problem

Posted on 27-03-2016 00:05 | By marshamaxw

The real problem is that we have tax incentives geared towards property investment as well as not allowing intensification in the areas closest to the CBD.Remuera, Epsom, Kingsland in Auckland are all gentrified suburbs, with expensive housing.The zoning rules act to protect their property ensuring the property transferred to another rich person instead of having it's value realised through intensified housing development freeing up land for smaller size houses which fit the price range of first time buyers. Housing has become another class projection, placing housing under the domination of the market. Put a tax on second homes would be one solution. Housing represents one area of social mobility and as first time home affordability drops,so too social mobility in society. Urban development sprawl over undeveloped rural land, represents the failure to rezoning inner suburbs for intensification as well as destruction of environment through increased pollution.


SO MAD!

Posted on 29-03-2016 17:00 | By NotNat

"We seem to be able to get Housing NZ and WINZ to house immigrants but cant even squeeze our people onto wait lists???" Does WINZ actually tell people to be prepared to sleep in their car????? didnt we run an article about some russian couple who lived off our tax payer for 18 years and are now complaining because they no longer get a free ride?? I definately read that story but WINZ are telling hard working families "be prepared to sleep in your car" its a piss poor excuse, try taking care of our own flesh and blood first!


Lpm67

Posted on 02-04-2016 02:46 | By Kenworthlogger

Flea pit of Te Puke??? Please explain that one for us? Marshamaxw if you put a tax on a 2nd home landlords wont be buying so many and that will put even more pressure on rentals as there will be far less and more people on the street that cant afford to buy or dont want to. The govt is not in the rental business that is why private landlords provide rentals. Take the incentives away from private landlords and lots more people will be living in cars..


Investment in Housingstops people who just want a home to call their own.

Posted on 05-04-2016 14:36 | By marshamaxw

I am not saying that home ownership should be goal nor that everyone should have.But the two groups in rental market include people who want a house but can't afford it and those who cannot live independently like people with disabilities. What my idea aims to prevent is negative gearing,which is how most landlords finance new homes. Taxation has not encouraged investment housing. What you are saying when you mean that the government does not have a role in rental housing, it does have one in social housing, those people can be have their needs met through suppported accommodation because I don't see your hand up, offering putting up these people in your home? Perhaps we could go back to having institutions like Kimberley in Levin.Not encouraging the goal of homeownership as nationbuilding project,is protection against the growth of a socially non-contributing underclass.This investment in housing clearly is class projectio


correction

Posted on 05-04-2016 16:23 | By marshamaxw

I mean our taxation has not discouraged investment in housing in my last comment.


Marshamaxw

Posted on 05-04-2016 16:59 | By Kenworthlogger

You are quite right in that govt should be in social housing not the rental market. The way that housing nz is run is a joke. You qualify for a house for life and no incentive to do well and buy your own when you can effectivly bludge off everyone else for life. The reason the govt gives tax incentives for private landlords in the form of negative gearing is it is far more cheaper to do that than to have to buy more houses to solve the rental housing problem. In effect the govt gets a private landlord to provide a house for rent for a fraction of the cost of having to finance the house itself thus helping house people. I hope that helps you understand why it gives tax breaks to private landlords.


Only people who cannot afford to purchase are renting

Posted on 07-04-2016 21:29 | By marshamaxw

The problem cannot be put down to personal circumstances as it is economic as well. People you are describe are on drugs and are candidates for social housing.Everyone else is renting because they cannot afford homeownership. Call it what it is,the tax break to the landlord is middle class welfarism ,you are not suggesting the state of affairs is acceptable I hope? Landlords are not charity,they are in it for investment,don't confuse that with them being in the business for as a favour for anyone including picking up the tab for the state. Instead of giving a tax break to the landlord they could give the money as a deposit to everyone towards owning their home for life, which the government recovered from deceased estate.A tax on second homes would free homes for people to buy and lower prices.Ban companies from buying residential homes.


Marshamaxw

Posted on 08-04-2016 19:26 | By Kenworthlogger

If you want a tax break anyone can do it. Start a business that losses money and you will get a tax break. Is everybody rushing in to businesses that loose money to get the tax break.... Um no. Its no different with rental houses mate.


Tax breaks for business that fail?

Posted on 09-04-2016 19:19 | By marshamaxw

That makes me so mad.The government's priorities are so wrong.


Marshamaxw

Posted on 10-04-2016 17:54 | By Kenworthlogger

Sounds like you would be much happier living in a communist country where everyone is the same. Then you would not feel so mad and believe the dictators priorities are right!


me some time tinks

Posted on 12-04-2016 14:40 | By The author of this comment has been removed.

That some of these people need to be tied up on the side of a bank somewhere, like i was bought up, thats why i live in a Hollow log on me 200 acre block, 10-4 out.NO1 Thankyou


I think we are crosspurpose

Posted on 14-04-2016 16:35 | By marshamaxw

I think we agree the solution is towards home ownership and writing off costs is wrong? The question is whether you think it is right that the landlords should be able to write off the loss they make on their rentals against their other income?I think you are saying having government should not play a role in the economy as you think it distorts the market? Are you arguing we should get rid of the housing sub as that a subsidy for landlords would free up a lot of houses for people to buy as landlords would exit the market.The ideology argument is that government should not interfer and should remove this subsidy, is what you think?But the comment about authoritarian communism and equalitarianism is irrelevant to our conversation. Putting tax on second home would free up more houses available for to buy so they wouldn't need to rent


Marshamaxw

Posted on 15-04-2016 23:12 | By Kenworthlogger

Every week i get the paper. Every week it has a section full of houses for sale. Lots of houses for sale so whats your point? There are houses for sale always anytime anywhere....


Hi Kentlogger

Posted on 16-04-2016 13:37 | By marshamaxw

Paula Bennett said the same things about there being plenty of jobs on trademe when she was Minister of Social Development disingenuously,I saw that one.The issue is with affordability. Vulnerable groups like first time buyers are disadvantaged they have no chance of owing a home because the wealthy investors beat them.There are wider benefits to making home affordable ,historically owning your own home has seen as a important measure of NZ society's social wellness and cohesion.Surveys show people who own their own home are more likely to be involved inhelping the community. If you think that insisting on having a new kitchen in your first home is wrong, we can agree.If you are saying that providing public housing creates a moral hazard for some, I will definitely agree as a positive re statement that homeownership is a nationbuilding social good,and why we need the changes i suggest


First home buyers

Posted on 19-04-2016 11:39 | By Kenworthlogger

Maybe they should give up their Skytv sub, buying new cars, ciggarettes, alcohol, having lots of kids etc and then they will find they can afford to buy a first home. Investors do not buy every house. That leaves lots of houses for first home buyers. First home buyers buying houses squeeze out other first home buyers from buying houses too. Thats life.


Culprit

Posted on 20-04-2016 22:03 | By Kenworthlogger

If your looking for a culprit here for housing unafordability its the record low interest rates.. So everybody wants to buy property......which pushes the prices up.. Simple really. Take note Towball....


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