Winston Peters has said that houses should be affordable even to those on the living wage.
He told journalists on Tuesday morning that houses should cost no more than five times the living wage.
“That would be the long term target, yes and that would still be a high ratio,” Peters said.
Living Wage Aotearoa says the living wage is currently $20.55. The Government plans to increase the minimum wage to $20 by 2021. This would mean some homes being sold for $208,000, even in Auckland.
According to REINZ data, the median Auckland house price is currently $852,000, roughly 20 times the annual income of someone earning the living wage.
Peters said the ratio should be the same for both individuals and couples.
“If you’re a single person it should be five times and if you’re a couple buying a house it should not be ten times,” he said.
“The lower income people in the halcyon days when we were a property owning democracy started by Labour and stolen by National and reframed under Holyoake’s property owning democracy mantra was to ensure that an ordinary low-wage person could buy a home at no more than three and a half to four times their annual income,” Peters said [SIC].
Peters was being questioned by journalists after his comments yesterday that houses should cost couples five times their annual income.
He refused to answer whether this meant house prices would have to fall.