6. Special Housing Areas—Affordability and AvailabilityMETIRIA TUREI (Co-Leader—Green) to the Minister for Building and ConstructionSpecial Housing Areas—Affordability and Availability6. METIRIA TUREI (Co-Leader—Green) to the Minister for Building and Construction: E hia ngā whare ka taea te hoko kua waihangatia i ngā Takiwā Waihanga Whare Motuhake o Tāmaki-makau-rau?[How many affordable homes have been built in Auckland's Special Housing Areas?]Hon Dr NICK SMITH (Minister for Building and Construction): Special housing areas (SHAs) are making a huge contribution to increasing housing supply in Auckland with about a third of the total new homes currently being built being in SHAs. About 5000 homes have been consented and 2800 have been completed to date in SHAs. We do not record the sales price of new homes in special housing areas or newly zoned areas under the new Auckland Unitary Plan. I do have information on sales prices in Government-initiated developments and on the basis of these estimates at least 400 of the new homes in special housing areas are under the KiwiSaver HomeStart cap of 650 grand.Metiria Turei: If the Minister is not counting the number of affordable homes and Auckland Council is not counting the number of affordable homes is anybody counting how many affordable homes are being built in Auckland in the SHAs?Hon Dr NICK SMITH: The Productivity Commission the Auckland Council and the independent hearings panel all agreed that trying to use the Resource Management Act to regulate a portion of affordable homes was unworkable and would not work and that what we needed to focus on was the overall level of affordability. I do note that in the last 12 months there has been a significant improvement in the housing affordability index used by Massey University in Auckland and that is to be welcomed.Metiria Turei: I raise a point of order Mr Speaker.David Seymour: Supplementary?Mr SPEAKER: No sorry I am dealing with a point of order first.Metiria Turei: Thank you Mr Speaker. I specifically asked who is counting how many affordable homes are being built in the Auckland SHAs. It has got nothing to do with the Resource Management Act.Mr SPEAKER: Order! I again listened very carefully to the question and to the answer and in light of the answer given to the substantive question I think that in this case the question has been addressed.Dr Parmjeet Parmar: What positive signs are there that the Government's reforms are addressing the housing challenges?Hon Dr NICK SMITH: Firstly record new home construction. The latest Statistics New Zealand figures show 2794 homes were consented in May. That is the highest number—Phil Twyford: They're trending down Nick.Hon Dr NICK SMITH: —in 40 years. It is up 20 percent on last May and how Mr Twyford says that is a trend down is truly remarkable. Secondly house prices in Auckland have been dead flat now for 9 months and the latest median price is actually down 1.7 percent on last October. Thirdly housing affordability in Auckland as measured by the Massey University index has been improving for 18 months and is down from a peak of 38 to 32. This positive data shows our policies are on the right track and delivering for New Zealanders.Metiria Turei: Is the Minister afraid that if he did start counting how many affordable homes have been built in his flagship SHAs he would be embarrassed by the low number?Hon Dr NICK SMITH: Quite the opposite—quite the opposite. It just seems odd that you would measure just the house prices in the special housing areas and not the substantive number of new homes that have been built with the new unitary plan or all the other homes that are being built. What the member should be welcoming is that over the last 18 months housing affordability in Auckland has been improving and I think every member of the House should welcome that.David Seymour: Does the Minister believe that the current rate of home building in Auckland is adequate to keep up with the number of houses required to keep up with population growth?Hon Dr NICK SMITH: The rate of new home construction in Auckland has grown every year for 6 years at an average rate of almost 20 percent. That is the longest and strongest growth in new home construction in Auckland's history. At the moment we are at 10400; we need to get to 13000. The independent pipeline report says that we will get to that level of 13000 houses per year at about the end of 2018. I do not believe you can grow the sector faster than we are.Metiria Turei: The Minister can confirm can he not that the purpose of his special housing areas legislation is to enhance housing affordability"?Hon Dr NICK SMITH: Absolutely. All the research shows that the best way to increase housing affordability is to increase supply and that is what we have been doing very strongly with 6 straight years of growth in new home construction in Auckland. That has never happened before and I would also suggest to the member and her party that if they were serious about improving affordability they would oppose the sorts of metropolitan urban limits that got us into the problem in the first place.Metiria Turei: The Minister can also then confirm that the special housing areas are being used to build "premier luxury retirement resorts" in Queenstown?Hon Dr NICK SMITH: Absolutely special housing areas are supporting increased numbers of retirement villages but what the member does not get is that when an older person moves out of their traditional family home into the retirement village they free up another home for a family and that is why I welcome it.Metiria Turei: Does the Minister stand by his statement he made this morning that affordability "is in the eye of the beholder"?Hon Dr NICK SMITH: It is absolutely true that what is an affordable house does vary depending on a person's circumstances and the fact is that there have been 5000 homes—Phil Twyford: Keep digging.Hon Dr NICK SMITH: —in special housing areas that have been built. I note Mr Twyford is interjecting. Those members announced a policy 4 years ago saying affordability was $300000. Then they made it $400000. Then they made it $500000. I have seen three figures from that member as to what he thinks is affordable and that reinforces the point of view that it does depend on a person's family circumstances."