Auckland needs more houses, different story elsewhere: ANZ

Demand could push up house prices and rents in Auckland, but areas outside the main centres have an overhang of supply, the ANZ bank says.

ANZ said anecdotes and talk of a shortage of housing were widespread, and it felt it needed to respond, particularly in relation to a shortage potentially driving up property prices and another mini-boom.

Across the country there was no housing shortage, but in Auckland excess demand had persisted for the past few years and was intensifying, ANZ said.

Even assuming no depreciation of existing housing stock in Auckland, the number of consents issued had fallen short of household growth.

"In contrast, other parts of the country have been increasing their housing stock at a faster rate than growth in underlying demand."

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Posted: 7 Jul 2009

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