This adds to the sense I have that those buyers have been let down by the system. This increased the supply of money, helped suppress interest rates, provided liquidity to the banking system encouraging banks to lend, thus helping drive the explosion in bank mortgage lending and house prices in 2020-2021. Statistics NZ's household living-costs price indexes rose 7.7% in the 12 months to March, with mortgage interest costs up 38%. I believe the system risks letting down many of those 2020-2021 first home buyers and we need to acknowledge that. Either way the system still feels like it needs major surgery if home ownership's to be a more sustainable and less speculative option.

Source: Stuff May 13, 2023 07:33 UTC