How Selling State Homes in Affluent Suburbs Creates Hidden Costs, Social Displacement and a Housing Crisis We Can’t Afford
The New Zealand government has announced plans to sell off high-value state homes in wealthy suburbs like Remuera, claiming that the move will help balance Kāinga Ora’s books and allow for reinvestment in cheaper housing elsewhere. At first glance, this might seem like a sensible, fiscally responsible decision. After all, why should the government own multimillion-dollar homes when it could use that money to build more houses in lower-cost areas?
However, history – both in New Zealand and overseas – suggests that this approach is deeply flawed. While the policy may achieve short-term financial relief, it is likely to create greater economic, social, and infrastructure pressures in the long run. Worse still, it risks reinforcing social segregation, pushing low-income families out of well-connected areas into lower-cost suburbs with fewer services, weaker transport links, and less economic opportunity.
