The moral issue of housing in Tauranga

Housing infrastructure, or the lack of, is an issue in a number of cities, including Tauranga. File photo/SunLive.

The city of Tauranga is facing a severe housing crisis due to its growing population and this has left many locals struggling to put a roof over their heads.

The issue has persisted over many years and has not seen significant improvement.

“Housing is a moral issue,” says Tauranga MP Sam Uffindell. “One of the most important things we can do is to fix our housing crisis.

“Our collective failure to build enough houses has trapped people in poverty, it has increased inequality, it has made us poorer, and it has shattered the Kiwi dream of a property-owning democracy,” he says.

Putting a roof over our heads shouldn’t be this hard.

“We have seen this in Tauranga where we have failed to build enough houses to accommodate our rapidly growing population, and as a result, Tauranga is one of the most expensive places to buy and rent in New Zealand,” says Sam.

Tauranga is a city bursting with opportunities, especially for younger people, however, the housing crisis and the living cost crisis have made it impossible for the younger generations to see owning a house as a possibility.

“The Government’s ‘Going for Housing Growth’ policy will remove constraints on urban limits that are holding our cities back, fix infrastructure funding and financing, and introduce incentives to encourage cities and regions to go for growth,” says Sam.

“In Tauranga and the Bay of Plenty, this means expanding housing into the Western Corridor, developing Te Tumu and Ōmokoroa, and intensifying along the Te Papa Peninsula.

“Zoning more land by itself isn’t enough. Councils need new tools to fund infrastructure.”

However, the question is, how much longer is this going to take? The citizens of Tauranga have already been struggling for years.

The Government might make a housing growth policy, but within that time, people will continue to struggle.

Additionally, how is this going to be paid for? Are taxes going to increase? The situation may be bad, but it has to get worse before it gets better. How much more of this can Tauranga locals take?

“TCC will struggle to fund the necessary infrastructure because they are at or near their debt limit,” says Sam.

When a representative of the council was asked if this was true, Tauranga City Council city planning and growth manager Andrew Mead says, “Simply yes, yes it is correct.”

An aerial view of Tauranga.

Andrew says, in a council meeting they had last week regarding the long-term plan, “There are some broader affordability concerns with the amount of debt that we’re able to have and the amount that rates can increase.

“This means that a significant amount of expenditure to open up new growth areas has not been able to be contained in the 10 years of our upcoming long-term plan.

“So that mainly affects the Te Tumu urban growth area which is roughly planned for about 6500 homes and it also affects the Keenan Road urban growth area which is probably 2500-3000 homes.

“In addition, a significant amount of intents of infrastructure to support intensification has to be removed as well, so like storm water upgrades and that kind of stuff.”

Tauranga MP Sam Uffindell says, “We will provide new financing tools to enable councils to provide the infrastructure necessary to increase housing supply.

Andrew says the council works within a range of debt ratios that they have to maintain and ensure they don’t exceed.

“We can’t exceed those [debt ratios] or the credit rating will be downgraded, the cost of borrowing goes up and all those sorts of factors,” says Andrew.

“We’re acting prudently for the broader community and also ensuring that we can contribute to invest for current residents as well as growth.

“We’re not able to deliver everything, it’s a common theme across New Zealand, and it’s certainly not a Tauranga-only issue. Hamilton is in a very similar position.

 “One of the key issues that has made it a lot harder, has been the removal of the previous government’s Three Water reforms.

“They were going to take responsibility for all the Three Waters investment and we’ve had to bring that back into the LTP which has reduced our ability to invest in other things.”

Andrew confirms the council want to deliver this infrastructure and open up these growth areas, however, it’s an issue of affordability.

“We are trying our best to use alternative funding of the normal council processes to enable these things to come forward, but at this stage, that funding is not locked in for these growth areas.”

So what does all of this mean for the public who are struggling in Tauranga’s housing crisis?

“I guess this means that in Tauranga there is going to be a continued kind of imbalance between the supply of new houses and the demand for new houses, so that is going to continue to put pressure on the availability of rental houses and will probably continue to put pressure on house prices as well.”

Andrew ensures that they are aware of the situation and it’s not a situation that they want to be in, so they are trying to find other solutions to try to address the issue.

“It is important to recognise that the council is still investing a lot to open up new growth areas, so it’s not like no new housing will be delivered.

“The investment is focused in the Tauriko West area to open up the first 2400 homes there; and the investment in the Pāpāmoa East interchange to open up the last 3000 odd homes in the Wairakei urban growth area.

“Then there are going to be changes to our planning rules to enable a lot more intensification across the city, so that’s going to open up a lot of housing opportunities that didn’t exist previously.

“So there still a lot of new housing that will continue to come into the market, just not quite enough compared to what we need,” says Andrew.

“The previous government made it very expensive to be a landlord and ultimately these costs were passed on to tenants.

“Improvements to the rental market will make it easier to be a landlord, and easier to be a tenant.”

“Restoring interest deductibility and supplying more houses will reduce upward pressure on prices in the rental market.”

Until these steps are taken, the situation will worsen while Tauranga locals wait for more housing.

“We will streamline building consents to make construction more efficient, strengthen competition for building materials, ensure the sector can access the workers it needs with appropriate immigration settings and trades training, and support research and the use of technology to deliver better results,” says Sam.

“We will harness digital technology to put building consents on a fast track and speed up the issue of Code Compliance Certificates by requiring certificates to be issued within five working days after a building passes final inspection.

“We are committed to increasing competition for building materials by granting automatic approvals for appropriately certified building materials from overseas.

“Products that meet European, American, British and Australian standards will be automatically approved for use in New Zealand.

“For too long in New Zealand it’s been too hard to build things. The consenting process is inefficient, untimely and expensive.

“Reforming the Resource Management Act is a key part of improving the consenting times for building houses.

“We have already repealed the burdensome Natural and Built Environment Act and the Spatial Planning Act.

“We are moving ahead with a stand-alone act to enable fast-track consenting to facilitate development of infrastructure and housing of national or regional significance.

“There are several key projects in Tauranga and the Bay of Plenty that we are focussed on enabling through this legislation. Finally, we will improve the social housing model.”

Tauranga MP Sam Uffindell.

The city centre is dead and road works are never ending; the housing crisis is the cherry on top.

“For too long those that need support haven’t been able to get it,” says Sam.

“You only need to look at the motel and homelessness situation to appreciate that urgent action is needed here.

“We are committed to developing solutions to address our social housing situation in Tauranga.”

“Past governments have left housing in the too-hard basket,” says the minister of housing Chris Bishop.

“As the Prime Minister has rightly said, this government is going to make the tough decisions in the national interest so we can get our mojo back as a nation,” says Chris.

“Part of that includes finally addressing the national disgrace that is our broken housing market.

“If we get this right, we will all be wealthier, more prosperous and better off,” says Chris.

“The people of Tauranga will be major benefactors of this new approach and as your local MP I am determined to address the housing crisis we face here,” says Sam.

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12 comments

Hmmm

Posted on 21-03-2024 08:35 | By Let's get real

Absolutely no point in reading the whole article, as it's widely known that Tauranga residents would rather bet on horses and play golf than build hospitals and housing.
The "green space" brigade obviously have no moral responsibilities, just selfish self-interest.


No such thing as social housing

Posted on 21-03-2024 09:15 | By an_alias

We need to reduce the cost of council and govt. We clearly can't cope with the immigration of too many people ?


Housing

Posted on 21-03-2024 09:37 | By Sycamore2

Perhaps people will have to accept the fact that there will be a finite supply of houses and therefore just because you want to work and live in Tauranga, doesn't mean you will be able to.


Reprioritize

Posted on 21-03-2024 09:59 | By Fernhill22

If as stated by TCC that they are nearing their debt limit, then they should be looking at ways of cutting costs & reprioritizing projects that are nice to have's but not a priority. An example of this being the $300m spend on the Civic Precinct which is a complete waste of ratepayers' funds on a nice to have project that adds no economic value or return on investment. This $300m should be reprioritized into opening up new opportunities for housing. Further savings could be made by amalgamating our 3 councils (TCC, WBOP, BOPRC) into one council and being more efficient & cost effective. TCC could also look at obtaining better value for money from their contractors & also ensuring penalties are included into their infrastructure projects when projects aren't delivered on time & on budget. We need better accountability on how ratepayers' money is being spent.


a few thoughts...

Posted on 21-03-2024 10:10 | By OG-2024

WHY must we expand? maybe we like Tauranga as a nice small city, NOT a sprawl like Auckland?
Not enough houses - ok dont move here, we can then focus on getting what we have up to scratch instead of stretching it to breaking point.
Does National forget they are one of the past governments that neglected to act, so why NOW all of a sudden?
OK Sam... WHEN will we see you out with a hammer helping to build these homes instead of just talking all day about it? put up or shut up!
cut migration and employ those already here, and get people off benefits, those who cant get jobs because they choose to abuse substances should NOT have benefits enabling them to do nothing all day - get out and work!


Flooded unskilled immigrants

Posted on 21-03-2024 11:46 | By @###

The housing situation has a problem in that tenants have so much control over the landlord. I like a few others have properties to rent but have had to deal with tenants organised through property managers who were not what the agents claim - perfect tenants. Last tenant refused to pay for power left unit uncleaned and damaged walls and believe it or not this person is a property manager. Unit is now empty as its not worth the stress. Immigrants coming in on the accredited employer work visa. This seriously needs looking into. These immigrants are paid $29.66 per hour for laboring jobs working along side kiwis who are being paid less and these kiwis are training them, where is the fairness in that. Immigrants are now better looked after than kiwis this is in the roading industry. Unskilled no economic value.


A few more thoughts ...

Posted on 21-03-2024 12:12 | By Murray.Guy

How about the developers and green field sellers meet the 'true cost' of their developments, rather than, as at present, having their $millions in profits subsidized by the 'home builder as orchestrated by the Urban Task Force and Council (through the obscene building impact fee regime)' and ratepayer, and in the city centre, the developer not contributing to the parking/access needs they create, again the ratepayer footing the bill.
Support 'Fernhill22' comments except for the amalgamation proposed. Benefits can be achieved by a collaborative approach with the BOPRC and WBOPDC. The larger bureaucracy only results in 'more staff on even higher salaries', coupled with the watering down of our at risk (non existent) democracy. To amalgamate with the BOPRC would ONLY result in the parasites in our city fleecing the income from the Port of Tauranga for their ego fueled aspirations,


@ Fernhill22 + OG

Posted on 21-03-2024 12:35 | By Yadick

A great comment Fernhill22 but I've come to expect nothing less from you. You've considered standing for Council I hope?
OG you raise some good points. As far as Sam on the hammer . . . possibly not :-) but it's great to finally hear something from the man. Sure it's the 11th hour but just perhaps, here he comes. Onwards and upwards Sam.
Substance abusers, I agree wholeheartedly with you.


@Fernhill22

Posted on 21-03-2024 15:35 | By morepork

Best post I have seen here for a long time. Concise, clear, and to the point. I agree 100%. I don't share Murray's reservations about amalgamation of the Councils; but I do understand his points. Overall, I believe a single body is easier to administrate and it can be optimized much more easily than 3 bodies. The quality of candidates matters, no matter HOW MANY bodies there are.


Rent prices is a huge problem in New Zealand

Posted on 22-03-2024 12:48 | By Dee236

I have noticed that housing is an issue and NZ has become a land grab for foreigners. So many Africans and Indians now own most of Auckland turning it in to slums. No more housing.


Human rights

Posted on 23-03-2024 19:34 | By Duegatti

Owning a home is not a human right.
It is a goal that requires sacrifice. If people are not willing to make the sacrifices needed to achieve that, it is their choice.
No one else is responsible for the consequences of that choice.


Tga Needs & don't need

Posted on 03-04-2024 18:29 | By k Smith

Tauranga needs, Cost effective planning and city design, Green space, Cost effective buildings, Medical services, Education services, Roading, Sports facilities, good elected council people, Parks and reserves, public transport,
Opening up green space, cheaper housing, emergency response services
Where do we find this? Start with the race coarse, We don't need horses,
(This is 100% better use for infrastructure) We don't need dozens of vaping shops, criminal gangs, road congestion, etc. Tauranga has a problems but we need to do some very carful and smart planning for the future.
There are some very smart people in Tauranga and we need to somehow get them involved, cut red tape. Too much ifs, buts, maybe on health and safety.


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