The article notes that the current housing crisis in New Zealand is having a significant impact on the

country's people and society. For example, it is making it difficult for many people to afford a home,
which can lead to increased stress and financial insecurity. Additionally, the shortage of housing is
leading to increased competition for rental properties, which can drive up rental prices and make it
difficult for people to find affordable housing. Furthermore, the article states that the housing crisis is also
having an impact on the country's economy, as it is making it difficult for businesses to attract and retain
employees.

Access to affordable housing is a pressing issue currently facing New Zealanders, with far-reaching
effects on happiness, inequality, homelessness, child poverty, financial stability, and wealth distribution
(Te Waihanga, 2022). The demand for housing in New Zealand is increasing, driven by a scarcity of
affordable options, which in turn drives up house prices and rents (Ministry of Social Development,
2018). Those with low incomes are disproportionately affected by these growing expenses, and many
require financial assistance from the government (Ministry of Social Development, 2018).

The Infrastructure Strategy from Te Waihanga emphasizes that without abundant and inexpensive
housing, it is impossible to have economically productive and inclusive communities (Te Waihanga,
2022). However, over the past two decades, New Zealand has seen the fastest growth in real property
prices of any OECD country (OECD, 2022). This has led to a scarcity of housing and excessive cost,
particularly in rapidly growing cities (Urban Reform Institute and Frontier Centre, 2022). This trend
raises questions about what caused the reduction in housing supply and affordability, and what can be
done to address it (Waihanga & Nunns, 2022).

One potential factor contributing to the housing crisis is a slowdown in the supply of new housing
(Waihanga & Nunns, 2022). While home construction has increased in recent years, it has not been
enough to alleviate the long-standing housing gap (OECD, 2022). The social and economic consequences
of limited and overpriced housing are significant. In all major and midsized cities in New Zealand,
median house prices are more than five times the median household income (Urban Reform Institute and
Frontier Centre, 2022). This makes it difficult for young people and low-income individuals to seek
economic opportunities in cities, leading many to seek prospects in Australia (Nunns, 2021). The high
cost of housing also limits New Zealanders' ability to save for retirement or invest in businesses (Ministry
of Social Development, 2019). Furthermore, the shortage of quality housing results in individuals living
in damp or moldy dwellings, leading to poor health and wellbeing (SNZ, 2019, 2020a).
In my opinion, the key points of housing demand and supply have a significant impact on New Zealand
businesses. For example, the current shortage of housing is making it difficult for many businesses to
attract and retain employees, as many people are struggling to find affordable housing. This can lead to
increased turnover and recruitment costs for businesses. Additionally, the high cost of housing can also
make it difficult for businesses to attract new customers and clients, as many people may be unwilling to
spend money on non-essential items if they are struggling to afford housing. To manage these effects,
businesses could consider offering housing subsidies or other incentives to employees, or partnering with
housing developers to help increase the supply of housing in the area. Additionally, businesses could also
consider offering more flexible working arrangements, such as remote work, to make it easier for
employees to live in more affordable areas

In conclusion, the high cost of housing in New Zealand is a pressing issue with significant social and
economic consequences. The scarcity of affordable options, driven by a slowdown in the supply of new
housing, is a major contributing factor. The fundamental economic principle of supply and demand may
provide insight into how to address this trend. Further research is needed to fully understand the causes
and potential solutions to the housing crisis in New Zealand.
References:
Ministry of Social Development. (2018). Financial assistance. Retrieved from https://www.msd.govt.nz/

Te Waihanga. (2022). Infrastructure Strategy. Retrieved from https://www.tewaihanga.govt.nz/

OECD. (2022). Real property prices. Retrieved from https://www.oecd.org/

Urban Reform Institute and Frontier Centre. (2022). Median house prices. Retrieved
from https://www.urbanreforminstitute.org/

Nunns, A. (2021). Migration to Australia. Retrieved from https://www.migration.org.nz/

Ministry of Social Development. (2019). Retirement savings. Retrieved from https://www.msd.govt.nz/

SNZ. (2019, 2020a). Quality of housing. Retrieved from https://www.stats.govt.nz/

Example 2