Home ownership is important to New Zealand and to New Zealanders.
Owning a home grants people certainty, security and stability. It lets people plant deep roots in their community, improves educational and health outcomes, and allows them to plan for their future. Everyone benefits when New Zealanders own their own homes.
Over the last decade, affordable housing has become increasingly out of reach. The demand for homes has far exceeded supply and the majority of new homes built have not been at the affordable end of the market.
What does this mean? It means that home ownership isn’t as simple as just ‘lowering expectations’, saving hard or ‘sacrificing a little’. Many people who traditionally would expect to own a home are locked out of home ownership.
This is where KiwiBuild comes in. It works in two ways.
Firstly, KiwiBuild is increasing the supply of affordable homes by incentivising property developers to build more affordable, high-quality, starter homes for eligible New Zealanders.
Secondly, KiwiBuild is transforming the way we build by driving innovation and developing new ways to build high-quality homes, using modern factory building. This is sometimes called modular or prefabricated housing. It keeps costs down, delivers high-quality design and gets more homes completed faster.
The scale of the KiwiBuild programme is vast, and the demand it creates will allow the construction and development industry to invest in their people and new technology. It will help to smooth out the ‘boom-bust’ cycle that has plagued the sector in the past and help prevent another housing shortage emerging in the future.
Most importantly, KiwiBuild will help first home buyers to own their own home.
KiwiBuild is committed to building 100,000 affordable, modest starter homes over the next 10 years.