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Following the Money: Understanding the Building Industry’s Exit from Affordable Housing Production

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The NZ Productivity Commission’s 2012 report suggested the building industry has largely stopped building in the lower value segments of the housing market.

This research bulletin suggests an explanation is the significant withdrawal of government capital assistance and investment in affordable housing. Although there has been a re-introduction of income related rents for state housing and some community housing provider tenants, the government is now distant from the building industry’s previously higher and sustained levels of affordable housing production.

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