Land, housing and capitalism : the social consequences of free markets in Aotearoa New Zealand

Introduction to Housing Markets in Aotearoa New Zealand

  • Overview of the impact of housing markets in Aotearoa New Zealand

  • Capital gains in housing over recent decades coupled with displacement of populations

Social Consequences of Free Markets

Grenfell Tower Tragedy

  • Date: June 14, 2017

  • Description: Entire families trapped and killed due to fire in Grenfell Tower, London

  • Acknowledgment of ignored warnings about housing conditions

  • Outcome: At least 80 confirmed deaths

  • Term: Social murder, defined by John McDonnell as the neglect from those in power leading to avoidable deaths

Forms of Social Murder in New Zealand

  • Lack of healthy housing impacting families, especially children

  • Statistics from 2000 to 2015:

    • 275,818 children experienced 413,316 hospitalizations possibly avoidable via improved housing

    • Over 1180 children died from housing-related illnesses

  • Medical research highlights the accessibility issues to healthy housing linked to policy failures

  • The Economist claims NZ has the most unaffordable housing in the world

Capitalism, Housing, and Social Inequities

Housing Market Characteristics

  • Aotearoa New Zealand deemed as having the "most unaffordable housing in the world"

  • Normal functioning of capitalist housing markets producing poverty, ill health, and death

  • Effects of monopolistic practices in rental markets due to lack of public/state housing

Influence of Profit Motive on Housing Maintenance

  • Poor maintenance of rental properties leading to negative health outcomes

  • Inequalities in housing markets affecting low-income families while benefitting property investors

  • Discussion of two political campaigns resisting these market-driven harms

Analysis of Housing Economics

Monopoly Power in Housing Markets

  • Significant housing price increases in housing from 2013 to 2017:

    • Overall rise: 42.8%

    • Auckland specifically: 56.7%

  • Supply and demand models insufficient to explain complexities in housing

Economic Measures and Growth

  • Critique of GDP as an inadequate measure of economic health:

    • GDP includes residential construction and rental income, misleadingly valuing tenant rents

    • Not accounting for social inequities arising from capitalist markets

Radical Housing Solutions Proposed

Expansion of Public/State Housing

  • Argument for massive expansion and democratization of public/state housing

  • Importance of well-resourced community-driven housing projects

Case Studies of Political Resistance in Housing

Tāmaki Housing Group

  • Origin: Formed to contest state-led gentrification in Glen Innes, Auckland (Tāmaki Regeneration)

  • Campaigns:

    • Resistance to evictions of public housing tenants

    • The ‘Stop Niki’s Eviction’ campaign exemplifying community-focused outreach

      • Attempted eviction despite being promised a ‘house for life’

Save Our Unique Landscape (SOUL)

  • Opposition to private housing developments on Māori land at Ihumātao

  • History of land confiscated by the State in 1863 and transitioned to private development

  • Highlighting conflicts over Māori rights and consultation in the development process

    • Experienced success when UNCERD stated, “the State party obtain the free and informed consent of Māori before approving any project affecting the use and development of their traditional land and resources.”

Bridging Economic, Social, and Environmental Justice

Inequalities in Housing Markets

  • Discussion on the simultaneous injustices faced by communities and the market profits realized by landlords

  • Understanding that current neoliberal models uphold capitalist interests at variance with social equity

Reimagining Housing Development Models

Papakāinga as a Solution

  • Definition: Community housing models based on Māori concepts of shared land and community involvement

  • Benefits:

    • Focus on whānau, hapū, iwi autonomy in land management

    • Active involvement facilitates healthier living conditions and social cohesion

Challenges to Papakāinga Development

  • Obstacles include:

    • Dominant legal frameworks favoring private land ownership

    • Lack of capital access and financial instruments for community-driven housing

Conclusion and Call to Action

  • Importance of recognizing the broader historical contexts of housing practices in Aotearoa New Zealand

  • Urgent need for structural changes to housing policy and practice

  • Proposals for radical reforms must prioritize collective housing solutions beyond market mechanisms

  • Advocacy for public and community housing as essential to address the ongoing crisis

References

  • List of references used in the research document.

  • Grenfell Action Group, The Guardian articles, medical journals, economist reports, historical texts, and UN reports related to Māori land rights and housing security.