February 2021 Update: The Golden Bay Weekly published an article noting that "New rating valuations prepared by Quotable Value (QV) for Tasman District Council (TDC), released last week, show rises in Golden Bay residential land values (LVs) of between 60-80 per cent in the period 2017-2020, leaving the rest of the region trailing in its wake. Takaka, where there is already a chronic shortage of affordable sections, topped the value-hike table."
As described in our project's 2020 Concept Proposal, today in Golden Bay:
- Over half of the population are unable to afford to buy their own home
- Are at high risk of homelessness
- Move on average once a year
- Often live in poor, unconsented accommodation
- Are vulnerable and pay excessive rent relative to the quality of the accommodation
In 2020 the average house price was $581,528. However, as shown below from our 2020 Housing Survey, only 7% of Golden Bay's population could afford to buy the average house. To afford a mortgage for the average house one needs an income of $70,000 - $100,000 per year. With the median income of Golden Bay in the 2018 Census only $25,500, this shows how impossible it is for most people to even dream of owning a home. Especially for the 37% of the population who can only afford a $300,000 house: the average price of a house section alone is now over $250,000.
The rental situation is also dire. On average, renters have to move once a year. They often live in unconsented and poor quality accommodation for extended periods. They regularly suffer homelessness.
What are the factors behind this crisis?
- Population Growth: "I have 569 people trying to buy a property in Golden Bay” (Ray White Realty)
- Lack of Housing Land
- Few sections
- Expensive sections (> $250k+)
- Expensive houses (Builds $450k+)
- Holiday Home Demand
- Low Incomes, compounded by
- No deposit savings
- Poor credit history