Is the Auckland housing market a bubble ready to pop? – Whiteboard Friday

Is the Auckland housing market a bubble? New evidence from Auckland University seems to suggest so.

In this Whiteboard Friday we see how rents in Auckland haven’t kept pace with recent house price rises. This suggests that the problem facing Auckland isn’t simply a lack of supply – we are facing an asset price bubble as people are chasing tax free capital gain.

This should make people pause for thought about whether to buy their first home or keep renting.

Is the Auckland housing market a bubble ready to pop? – Whiteboard Friday was last modified: September 5th, 2016 by Gareth Morgan

About the Author

Gareth Morgan

Gareth Morgan is a New Zealand economist and commentator on public policy who in previous lives has been in business as an economic consultant, funds manager, and professional company director. He is also a motorcycle adventurer and philanthropist. Gareth and his wife Joanne have a charitable foundation, the Morgan Foundation, which has three main stands of philanthropic endeavour – public interest research, conservation and social investment.