Wellington - For many, life in New Zealand's capital Wellington is largely back to normal. Its wind-swept streets are crowded with maskless shoppers and office workers, bars are packed and the economy is humming along.
The number of people seeking emergency housing in the city of 211 000 has tripled in the last 12 months, as rents hit record highs and the pandemic disproportionately impacted lower-earning jobs. "Families facing homelessness are in a vulnerable position and we aim to find them accommodation quickly. After a family’s urgent need for accommodation has been taken care of, we look for more suitable options as they become available," Hocking said.
New Zealand is experiencing what economists call a'K-shaped' recovery, in which those on top benefit while those at the bottom see their prospects deteriorate. Instead, investors flush with funds have become the biggest property buyers - some 40% of houses bought in the final quarter of 2020 were by owners of multiple properties.
The South Pacific country of 5 million now tops the list for the most unaffordable housing among OECD nations. "Ardern still has a clear lead over her rivals, but she is losing moral authority and she's in danger of losing a lot of faith from her own side," said Bryce Edwards, political analyst in residence at Victoria University of Wellington."Housing is one of those core left wing issues and it's just astounding to see Labour is faulting on this."
"Māori are in a housing crisis. There are profound inequalities, and we are always forced to fight the system," said Hamlin-Paenga. The Reserve Bank of New Zealand pumped the economy with record low borrowing rates, a NZ$100 billion quantitative easing programme and mortgage payment holidays forhomeowners.