Labour: Auckland's new housing to cost more than $800k
Auckland's Unitary Plan, touted as a major piece to solving the city's tricky housing problems, has come under fire from the Labour Party.
Leader Andrew Little says, according to modelling undertaken as part of the Unitary Plan, only 15 percent of new homes expected to be built under the plan would cost less than $800,000.
"The majority of these houses will be out of the reach of most Auckland families," he says.
The modelling was done for the Independent Hearing Panel and found that of the 247,000 new homes planned within the existing urban area, many would price beyond $1 million.
Current house prices in Auckland are averaging around $900,000.
Mr Little says less than 2 percent of new homes will cost less than $600,000, while just one house is expected to be sold for less than $500,000.
"The mortgage on a $600,000 home costs nearly half of the median Auckland income, meaning 98 percent of these 247,000 houses will be unaffordable to the typical family.
"If this is National's brave new world, then they are even more out of touch than anyone suspected," Mr Little says.