Property investors claim they're helping renters

The median price of a home in Auckland is $842,500 (Getty)
The median price of a home in Auckland is $842,500 (Getty)

The Property Investors Association is disputing Labour's claim that speculators are behind the Auckland housing crisis.

According to property analysts Core Logic, one in seven homes sold in Auckland are going to people with five or more properties already to their name.

"National has refused to shut down their speculator mates, allowing them to make a killing in a rising market at the expense of first-home buyers," says Labour housing spokesperson Phil Twyford.

But the Property Investors Association's executive officer Andrew King says that's not a problem - it's actually good for renters that investors are snapping up much of what goes on sale, instead of first-home buyers.

"Tenants really benefit out of this because there's currently a shortage of rental properties for them," he told RadioLIVE.

"That's why they're living in cars and overcrowded conditions. We need more rental properties - not just properties for first-home buyers."

Mr King believes it's still possible for first-home buyers to purchase in the Auckland market, so long as they save hard and compromise on quality.

The median price of a home in Auckland is $842,500 according to REINZ, with the mean about $1 million. According to real estate agents Barfoot and Thompson, that's double what it was in 2010.

Newshub.

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