Statistics show that 98 free market affordable homes have been built under the Auckland Housing Accord.
However, Councillor Chris Darby who serves as the chair of Auckland Council planning committee criticises the Accord as a “dismal failure” in addressing affordability.
The Housing Accord launched in October 2013 for a period of three years and was extended by seven months.
According to Auckland Council’s data, 3157 homes were completed in SHAs by the end of June, among which 580 were deemed as affordable. The affordable homes were then further split into two categories.
482 were classified as “retained affordable”, which generally referred to social housing. The second category relates to free-market ‘relatively affordable’ homes. 98 of such homes have been built in SHAs. This category of home are often priced below the $650,000 cap.
However, some in this category are not yet built, although 106 first-home buyers have already signed up for them.
Moreover, 40 ‘relatively affordable’ houses have been sold, yet declarations have not yet been lodged.
Darby explains that the Housing Accord addressed the problem of supply – but not affordability. “The information on the number of consents shows they are being converted into dwellings. In terms of the key focus of the Housing Accord, on affordability, on that count it’s been a dismal failure.”
Besides the 3157 homes finished in June, an additional 2504 are under construction.
Furthermore, affordable homes are being sold beyond SHAs.
It is estimated that 14,000 homes will need to be per year in Auckland to control housing shortage and to push growth.