KiwiBuild is a real estate development scheme pursued by the Sixth Labour Government of New Zealand. It began in 2018, with the aim of building 100,000 homes by 2028 to increase housing affordability in New Zealand. It comes under the oversight of the Ministry of Housing and Urban Development and the Minister responsible is the Minister of Housing, Megan Woods. [1]
The KiwiBuild scheme was first announced as Labour Party policy in 2012 by then leader David Shearer. [2] The policy survived as party policy under all his successors and was a prominent feature of Labour's 2014 election campaign.
After the 2017 general election, the Sixth Labour Government of New Zealand took office. Finance Minister Grant Robertson outlined a mini-budget on 14 December 2017 which allocated $2 billion of capital spending to KiwiBuild. Homes built under the programme are sold to first-home buyers and the cash is recycled into further housing developments. [3]
In mid-January 2019, Housing Minister Phil Twyford acknowledged that the government would be able to build only 300 of the 1,000 KiwiBuild homes it had promised by 1 July 2019. [4] [5] That same month, it was reported that KiwiBuild's head Stephen Barclay had resigned following a dispute with Twyford over moving KiwiBuild from the Ministry of Business, Innovation and Employment (MBIE) to the new Ministry of Housing and Urban Development (HUD). [6] [7] Later reports claimed that Barclay had been the subject of complaints by staff over his leadership behaviour and treatment of others. In late January, Barclay filed a constructive dismissal case against HUD, claiming that the Ministry had breached his privacy. [8] [9] In August 2019 head of KiwiBuild Commercial Helen O'Sullivan also resigned causing further disruption. [10]
On 4 September 2019 a "reset" of the scheme was announced by new Housing Minister Megan Woods. Changes included the target of building 100,000 houses over 10 years being abandoned, the allocation of $400 million to support alternative home ownership schemes (such as rent-to-own), those buying studios and one-bedrooms units only having to commit to one year of ownership opposed to three, the 10% deposit requirement for a First Home Grant lowered to 5%, groups of more than three can combine their $10,000 First Home Grants together for a single joint deposit, the amount developers receive after triggering the underwrite has been lowered. [11] [12] [13]
By September 2019, the scheme had produced only 258 homes, far below the set targets. Data also highlighted that the Kiwibuild houses were not attracting buyers, leading to the unsold houses being put onto the private market in some areas, costing the government over $8,000,000.
By October 2020 the scheme had produced only 602 homes, with rumors abound that many of this number were actually purchased from private developers in attempt to make statistics look better. [14] By May 2021 this had increased to 1,058. [15]
To be eligible to buy a KiwiBuild home, buyers must be New Zealand citizens, permanent or usual residents, earn less than the relevant annual income caps ($120,000 for singles, $180,000 for couples) and intend to live in and own the home for at least three years. [16]
The scheme has attracted criticism around the income caps, with claims that they are too high for low-income buyers to be able to compete with those receiving higher incomes. [17] [18] Following the sale of the first Kiwibuild homes, then-Housing Minister Phil Twyford stated that the scheme was not targeted towards working poor and unemployed families, attracting criticism from aspiring home-owners and activists who argued that KiwiBuild will lead to increased speculation and gentrification. [19]
The economy of New Zealand is a highly developed free-market economy. It is the 52nd-largest national economy in the world when measured by nominal gross domestic product (GDP) and the 62nd-largest in the world when measured by purchasing power parity (PPP). New Zealand has a large GDP for its population of 5 million, and sources of revenue are spread throughout the large island nation. The country has one of the most globalised economies and depends greatly on international trade, mainly with Australia, Canada, China, the European Union, Japan, Singapore, South Korea, and the United States. New Zealand's 1983 Closer Economic Relations agreement with Australia means that the economy aligns closely with that of Australia.
The New Zealand Initiative is a pro-free-market public-policy think tank and business membership organisation in New Zealand. It was formed in 2012 by merger of the New Zealand Business Roundtable (NZBR) and the New Zealand Institute. The Initiative’s main areas of focus include economic policy, housing, education, local government, welfare, immigration and fisheries.
State housing is a system of public housing in New Zealand, offering low-cost rental housing to residents on low to moderate incomes. Some 69,000 state houses are managed by Kāinga Ora – Homes and Communities, most of which are owned by the Crown. In excess of 31,000 former state houses exist, which are now privately owned after large-scale sell-offs during recent decades. Since 2014, state housing has been part of a wider social housing system, which also includes privately owned low-cost housing.
A first-time home buyer grant (or first home owners grant) is a grant specifically for/targeted at those buying their first home — perhaps a starter home. Like other grants, the first-time buyer does not hold an obligation to repay the grant. In this respect, it differs from a loan and does not incur debt or interest. Grants can be given out by foundations and governments. Grants to individuals can be a cash subsidy.
KiwiSaver is a New Zealand savings scheme which has been operating since 2 July 2007. Participants can normally access their KiwiSaver funds only after the age of 65, but can withdraw them earlier in certain limited circumstances, for example if undergoing significant financial hardship or to use a deposit for a first home.
Social welfare has long been an important part of New Zealand society and a significant political issue. It is concerned with the provision by the state of benefits and services. Together with fiscal welfare and occupational welfare, it makes up the social policy of New Zealand. Social welfare is mostly funded through general taxation. Since the 1980s welfare has been provided on the basis of need; the exception is universal superannuation.
The Ministry of Social Development (MSD) (Māori: Te Manatū Whakahiato Ora) is the public service department of New Zealand charged with advising the government on social policy, and providing social services.
Climate change in New Zealand involves historical, current and future changes in the climate of New Zealand; and New Zealand's contribution and response to global climate change. Summers are becoming longer and hotter, and some glaciers have melted completely and others have shrunk. In 2021, the Ministry for the Environment estimated that New Zealand's gross emissions were 0.17% of the world's total gross greenhouse gas emissions. However, on a per capita basis, New Zealand is a significant emitter, the sixth highest within the Annex I countries, whereas on absolute gross emissions New Zealand is ranked as the 24th highest emitter.
Philip Stoner Twyford is a politician from New Zealand and a member of the Labour Party. He has been a Member of Parliament since 2008. He is the Labour Party MP for Te Atatū.
Kāinga Ora, officially Kāinga Ora – Homes and Communities, is a Crown agency that provides rental housing for New Zealanders in need. It has Crown entity status under the Kāinga Ora–Homes and Communities Act 2019.
Megan Cherie Woods is a New Zealand Labour Party politician who serves as a Cabinet Minister in the Sixth Labour Government and has served as Member of Parliament for Wigram since 2011.
Julie Anne Genter is an American-born New Zealand politician who is a member of the House of Representatives representing the Green Party of Aotearoa New Zealand. She served as the Minister for Women, Associate Minister for Health and Associate Minister for Transport during the first term of the Sixth Labour Government. She holds dual citizenship of New Zealand and the United States.
The Ministry of Business, Innovation and Employment is the public service department of New Zealand charged with "delivering policy, services, advice and regulation" which contribute to New Zealand's economic productivity and business growth.
Auckland, New Zealand's largest city, is considering introducing light rail lines to replace some of its most heavily used bus routes. Many of these new light rail lines, if built, would reuse the routes of Auckland's former tram system. Light rail systems have been proposed in Auckland throughout the late-20th and 21st centuries following the closure of the tram system in the 1950s.
The property bubble in New Zealand is a major national economic and social issue. Since the early 1990s, house prices in New Zealand have risen considerably faster than incomes, putting increasing pressure on public housing providers as fewer households have access to housing on the private market. The property bubble has produced significant impacts on inequality in New Zealand, which now has one of the highest homelessness rate in the OECD and a record-high waiting list for public housing. Government policies have attempted to address the crisis since 2013, but have produced limited impacts to reduce prices or increase the supply of affordable housing. However, prices started falling in 2022 in response to tightening of mortgage availability and supply increasing. Some areas saw drops as high as around 9% - albeit from very high prices.
The Minister of Housing is a minister in the government of New Zealand with responsibility for the government's house-building programme. The position was established in 1938 as Minister in charge of Housing, and has most commonly been known as Minister of Housing. Other iterations have included the Minister of Building and Housing, the Minister of Social Housing, and the Minister of Housing and Urban Development.
The Sixth Labour Government has governed New Zealand since 26 October 2017. It is headed by Chris Hipkins, the Labour Party leader and prime minister.
The Overseas Investment Amendment Act 2018 is a bill that amends the Overseas Investment Act 2005 to ban most non-resident foreigners from buying existing houses, by classifying them as sensitive land and introducing a residency test. Australian citizens are exempt from this rule as they are considered New Zealand residents per the Trans-Tasman Travel Arrangement. Singaporean citizens are also exempt due to free trade rules. The Overseas Investment Amendment Act was supported by the Labour–led coalition government but was opposed by the opposition centre-right National and libertarian ACT parties. It passed its third reading on 15 August 2018 and received royal assent on 22 August.
The Ministry of Housing and Urban Development is a cabinet-level public service department responsible for overseeing the New Zealand Government's housing and urban development programme. It formally came into existence on 1 October 2018 and assumes the housing policy, funding and regulatory functions of the Ministry of Business, Innovation and Employment (MBIE), the Ministry of Social Development (MSD), and the New Zealand Treasury. It is headed by the Minister of Housing Megan Woods.
Ricardo Menéndez March is a Mexican-born New Zealand activist and politician who, since 2020, is a Member of Parliament for the Green Party of Aotearoa New Zealand in the House of Representatives.