Demand for better homes fuels unsustainable house prices – RBNZ study

Researchers say higher interest rates can reduce demand for better quality homes

RBNZ
Photo: Rachael King

A new study by the Reserve Bank of New Zealand argues that the demand for better quality housing is a “major reason” contributing to unsustainable house price growth.

House prices become unsustainably high, or “cyclically backward”, when property developers are temporarily unable to meet the increased demand for better quality homes, researcher Andrew Coleman concluded after reviewing relevant international literature.

Such capacity constraints could last for several years, during which time

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.