Fixing the housing crisis
the role of intergenerational policy design in addressing the issues
This article looks at the intergenerational issues associated with housing in New Zealand. Election year is again upon us (Covid-19 permitting) and, with the problems surrounding KiwiBuild, housing affordability is under the spotlight. It is no secret that New Zealand has a housing affordability problem and many causes are feeding this.
Two of these causes – capital taxation inconsistencies and infrastructure issues – will be the focus of this article. Inconsistencies in the taxation of capital income are a major source of the problem, causing intergenerational transfers from younger to older generations. A land tax is a possible solution. Complementary policies targeted at addressing infrastructure bottlenecks also have an important role to play.
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