Housing Costs

Dominion, Volume 37, Issue 278, 21 August 1944, Page 4

Housing Costs

Sir, —I was very interested in Mr. R. Semple’s statement that building costs in New Zealand have increased by only 26 per cent. Nothing is stated in your esteemed publication as to what date the increase dated from, and I therefore assume that it is meant from the beginning of the war. Mr. Semple is grossly misinformed if he is relying upon experts’ figures. The increase is much nearer three times the percentage he states — very much nearer. Too many Ministers have made equally wild statements. I am informed that State houses today are costing anything from 30/- to 35/- per square foot. Assuming 1000 square feet in a house, the cost ranges from £l5OO to £1750 for the house alone. Every builder in New Zealand knows that the percentage stated by the Minister is completely in error. One of my clients yesterday told me that.he was building a house of 1300 square feet, and it was costing him over £2lOO, and he was supplying certain fitments. What are we coming to? How in the world can a worker occupy such houses and how is the State able to let its houses at reasonable rentals without the rest of the community having to subsidize the rentals? I well remember Mr. J. Hodgens our esteemed member for this district building houses for State Advances mortgages and under Government supervision at 13/4 per square foot, such price including motor shed, concrete drive and paths ami fences. Good houses they were, too. He must be aghast at present prices. Why does not the Hon. R. Semple consult him before making such statements? Mr. Hodgens knows what houses are costing today. This, of course, was some years ago, and prior to the depression when houses were being built at 10/- per square foot. No one suggests that we want houses built by depression methods and prices. I realize that to build any houses in wartime is quite a feat. ,What I object to is the loose statement about increased costs. It is well known that since the Government commenced building State houses that its actions have increased costs by leaps and bounds. High taxation being one of the chief causes, increased benefits to workers being another, and less return from labour being another. I do not blame the Government for all these _ causes, of course, but it is useless Ministers of the Crown evading facts. . We have no hope of coping with the housing shortage with present costs —admitted that during the war matters are not under the sole control of the INew Zealand Government, many imported items are excessively priced. To get anywhere, either with private enterprise or State enterprise, costs simply must come down. Sales tax should be one item to come off at once. No worker can pay rentals required, rentals being based on cost and a return of 5 per cent, interest (subject to taxation) being expected He would be required to pay £2/10/- to £2/15/- per week which is quite ridiculous. I asked a prominent local architect his ideas of increase and he stated approximately 100 per cent, as far as dwellings were 'concerned and say 75 per cent for other buildings. I also have the New Zealand Valuers’ Institute report in front of me.for June, 1944, in which they show price per square foot of? houses built within the past six months in Auckland suburbs. For 33 houses the average cost is 28/- per square foot, or £l4OO for a house of 1000 square feet. lam informed that the cost for State houses is 30/- to 35/- per square foot, the latter figure being nearer. —I am, etc., VALUER. Palmerston North, August 19.