House Prices Outstripping Wages By 4 To 1

The Council of Trade Unions says more needs to be done to lift the wages of working New Zealanders if we are to address the housing affordability crisis.

"In the last three years house prices have increased by 38.5% while at the same time wages have gone up by 8.7%," CTU president Ross Wilson said today.  "It's no wonder then that home ownership is increasingly out of reach for low and middle income New Zealanders."

"We appreciate that more work needs to be done on tax and zoning issues, but if house prices are outstripping wages by 4 to 1 then that must be a cause for concern."

Regular wage increases and workers accessing KiwiSaver are two vital ingredients in tackling the high cost of home ownership, Ross Wilson said.

"Unions will be getting involved in KiwiSaver including seeking employer contributions," he said.

"The CTU will also be participating actively in the Commerce Select Committee's inquiry into housing affordability, and are encouraging others to do so also."

"And the OECD report out today highlights the need to lift living standards.  The CTU supports initiatives to increase productivity but in a way that can boost living standards for many low paid New Zealanders."