HOUSING CRISIS SEEN

Dominion, Volume 35, Issue 52, 25 November 1941, Page 6

HOUSING CRISIS SEEN

Wellington Problems DEMAND FAR AHEAD OF SUPPLY

“We are not facing a first-class housing crisis. We are past that stage, and for this city it is going to be a tragedy of some magnitude. It is very worrying, disconcerting and distracting, and I do not see any prospect of relief at present,” said a leading Wellington land agent when surveying the property market and the conditions ruling for housing accommodation in the city.

Another opinion expressed was that speculators in residential property were more active, now than had ever been known before and some were making tidy profits on their dealings. It was stated that the erection of Government houses was not keeping step with the demand, that there were more than 8000 prospective tenants of these on the waiting list alone, and that in any event, soldiers returning from active service overseas would have first call on these dwellings. Alarm was voiced at the proportion of Wellington’s growing population which was compelled to live in flats, and the conditions which were being created by this problem. It was considered that because of the housing situation generally, Wellington was heading for a grave Governmental and municipal problem. Avalanche of Buyers. “Through all the years I have been in business here I can conscientiously say we have never had such an avalanche of buyers,” said one agent. "It appears that almost every . second married family in Wellington is househunting. The demand far exceeds the supply and, with practically every suitable house section in Wellington and its environs built on, I regret to say that the future for home-seekers does not look too bright. Taking a line on the Hutt Valley, the Government has secured practically all the available building sections, making it extremely difficult to acquire by private treaty suitable land for house-building. We have only a handful of sections available in the Lower Hutt and city areas. In Wellington and its suburban areas the scarcity of vacant sections is acute,. Local builders are at their wits’ end to obtain them. This, with the cost of materials and labour difficulties, is creating a grave position. High Cost of Building.

“The cost of building a house today is enormous —the highest in the history of Wellington—and of recent date new five-roomed bungalows have sold up to and above £2OOO. Recently a new bungalow of five rooms, with kitchenette, a small sunroom and garage, brought £2500 in Karori. A well-finished new house of four rooms, with kitchenette and garage, sold for £2250 in Khandallah. Modern bungalows of five rooms, with kitchenette, sell readily at £1950, and average bungalows, 10 to 15 years old, in outlying suburbs, have been selling at prices from £1650 to £2OOO. Sales are readily effected where house properties are reasonably suitable to the requirements of purchasers. "There is a grave shortage of houses of every type and age," it was said. “During the last six years many thousands of public servants have been moved at short notice to Wellington, and till they'have disposed of properties in other towns, they have not been in a position to repurchase. There is a continual stream of inquiries from buyers and tenants. Prices have been Arming, and will continue to firm. Most sellers want cash over mortgages, but in a few cases easy terms have been arranged. There appears to be plenty of money about, and buyers in some cases have even paid off existing mortgages. It is no trouble to arrange a first mortgage within a few hours, as investors’ agents and groups are continually advising that they have ample funds for investment in house properties. Lower Christchurch Values.

"It is generally admitted that Wellington prices are roughly 50 per cent, higher than those in Christchurch, and, judging by Auckland prices, though they have firmed there, those in Wellington are still considerably higher. The availability of land for building in Wellington and the Hutt Valley has been a big factor.”

Commenting upon feasible solutions to Wellington’s housing difficulty agents mentioned that one way out might be for the Railways Department to electrify the line north as far as Upper Hutt, providing fast services at reasonable fares, as already quite a number of workers were coming from there into the city daily. It was a fact, it was stated, that there was a greater density of population in the heart of Wellington than in the centre of Auckland, but the suburban population was greater at the northern centre, which had ample room for expansion. “If slum conditions included the close congregation of people in houses, then we have them 100 per cent, in Wellington,” said another agent. "Young couples settle in rooms and then, as children come, they find the position untenable. Homes cannot be secured without substantial deposits. People in Wellington are herded ami huddled together like sheep or rabbits. I have seen a fourroomed house, let to a widow for 30/in which she and four married couples lived. One couple had four children, and all slept, cooked, ate and lived in the same room. In another room I saw a woman trying to cook meat in an open grate.” It was said that the Government housing scheme had virtually first call on materials and men, and this had practically obliterated private house builders. The cost of the erection of the State houses was high, and it was quite common to find that a decent house could not be built for less than 35/- a square foot.’ People with an independent spirit wanted to buy houses, and not rent them. For the average run of people it was almost impossible to get State houses, many of which were uncompleted because of lack of materials and tradesmen. When the Government housing scheme first got under way private enterprise was constructing houses to order, but this had almost ceased, and it was doubted if there were as many as 15 houses at present being built for sale in Wellington or Lower Hutt.

Speculators Very Active.

“The houses are not there to, sell,” commented yet another agent. ‘‘There is a big shortage of houses at prices which purchasers are willing to pay. People who sell have to consider the cost of replacement. The market is definitely one for sellers, and valuations in 90 per cent of the cases are fictitious. There is more speculation today in house properties than ever I have known before. They are bought for cash, renovated cheaply, refinanced on mortgage, and operators clear £4OO to £5OO on a single transaction.”

It appeared that big steel blocks would have to be built cheaply and rapidly. Most people would far rather live in houses of uniform design than in flats.