Surplus of Homes Sooner Than Expected

retirementThere’s been a lot of commentary pre and post Election on New Zealand’s lack of housing in the main centres and in particular Auckland. In fact we now believe we can ride a huge building wave for years to come before supply meets demand and our economy is going to ride along with it.

On PropertyTalk discussion forum, a popular thread titled ‘Predictions for 2015’ moved the topic onto supply of housing and a PropertyTalk poster suggested New Zealand will have a glut of houses in the not too distant future.

His reasoning being as baby boomers retire, sell up and move into a retirement villages their homes are back in the market. Retirement villages are popping up ‘en masse’ and they are housing hundreds of people who used to have their own home (owned or rented).

Centres like Tauranga and Kapiti are said to have an oversupply of retirement homes right now and as a result competition has set in with retirement villages dropping the age requirement to allow younger people in.

There’s no doubt our ageing population will fill up these retirement villages and more of them over the coming years. The question is – is the future prediction of lack of housing overstated? Clearly the movement of the baby boomers to these villages will provide a large supply of standalone homes in the market so will we need huge new property developments?

Maybe we just need more retirement villages and less large scale new home developments.

This blog article was written for PropertyBlogs by Mobilize Mail.

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