To the market and back: Housing policy and state housing in New Zealand

Abstract

Housing policy in New Zealand has traditionally been characterised by significant market intervention in support of home ownership and a residual state housing rental sector. Within the context of dramatic social welfare reforms in the 1990s, a set of radical housing reforms was introduced that profoundly transformed the role of the state in the housing system. Key elements of the reforms included the creation of a profit-oriented company to manage state rentals, a move to market rents in the state sector and the introduction of an accommodation supplement. This paper examines the underlying rationale and impacts of the reforms focusing on issues of privatisation, tenant turnover, affordability and tenant protest. Having examined the ongoing problems engendered by these reforms the paper reviews more recent political and legislative reforms that were sought to reassert the state's traditional position within the New Zealand housing market.