If Labour are set to announce 100,000 new homes this weekend, the former Reserve Bank guy who just suggested that the government build 150,000 new homes to deliberately crash the housing market and devalue residential properties by 40% probably hasn’t done them many favors.
What even would that 40% hair-cut look like, by-the-way? Wouldn’t that bankrupt a huge proportion of Auckland property owners and destabilize our entire banking sector? I mean, I don’t think building that many houses would actually do that. They wouldn’t appear overnight, but over years, which would lead to a plateau rather than a market crash. But say it did happen!