Auckland can’t afford to price out the young
It’s no secret that Auckland has a problem with high-cost housing. House prices have risen significantly faster than average incomes in recent years. As a recent Treasury working paper (Skidmore, 2014) documented, Auckland’s house prices have quadrupled in the last generation, and rents have more than doubled.…
71 Comments Alain Bertaud in Auckland
Back in July former World Bank urban planner Alain Bertaud and his wife Marie-Agnes, a fellow professional in the field, came down to New Zealand at the invitation of the NZ Initiative and the Minister of Finance’s office to deliver a series of talks on urban economics.…
Space is expensive in cities, so why don’t we use it more efficiently?
Land is a scarce and expensive resource in Auckland, as the city’s strong economy and natural amenities (sunlight! beaches! bush!) mean that a lot of people want to live in a relatively small area. But we often insist upon acting like urban space is worth nothing – why else would we have so many underutilised parking lots around the place?…
Better cities mean a wealthier New Zealand
Last week I took a look at whether government policy to support regional economies could divert growth away from Auckland. Based on the historical evidence, the answer seems to be no – people want to live in Auckland and start businesses here, and it’s senseless to try and stop that.…
Airplane fares reveal the value of time… and the importance of choice
High airplane fares are in the media this week, as Air New Zealand is about to pay a special dividend after a 45% increase in profits. Some people have suggested that the airline should cut fares on regional routes instead. But how high are the fares, really?…
New Zealand can’t put the urban genie back in its bottle
Although the majority of New Zealanders have lived in towns and cities for almost a century, it sometimes seems like we’re in denial that we live in an urban nation. This unease came to the fore during the debate over the Auckland Plan and the Unitary Plan.…
The inflationary impact of road spend-ups
It’s time for a quick round of everyone’s favourite game, Ask An Economist. Today’s question is: What happens when the government decides to spend up large in a growing economy?
If you guessed that the answer is that it will drive up inflation and crowd out private sector spending, congratulations!…
Guide to economic evaluation part 3: What is agglomeration?
Debates over major transport investments often get caught up in arguments over benefit-cost ratios, or BCRs. In recent years, projects such as the Transmission Gully and Puhoi to Warkworth motorways and the City Rail Link have been criticised for their low BCRs.…
Location affordability in New Zealand cities – is greenfield growth really affordable?
Several weeks ago I attended the annual New Zealand Association of Economists conference in Auckland. Geoff Cooper, Auckland Council’s Chief Economist, had organised several sessions on urban issues, and as a result there was a lot of excellent discussion of urban issues and Auckland’s housing market.…
Guide to economic evaluation, part 2: What are the benefits of transport projects?
Debates over major transport investments often get caught up in arguments over benefit-cost ratios, or BCRs. In recent years, projects such as the Transmission Gully and Puhoi to Warkworth motorways and the City Rail Link have been criticised for their low BCRs.…
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