Better quality demands helped fuel house prices: Reserve Bank

Better quality demands helped fuel house prices: Reserve Bank
Reserve Bank researcher Andrew Coleman says house price surges are often caused by interest rate movements. (Image: BusinessDesk)
Jenny Ruth
Demand for better quality housing, which cannot be quickly met from new supply, is a major reason for unsustainable house prices, says a Reserve Bank of New Zealand paper by researcher Andrew Coleman.The paper also argues that temporary house price surges are often caused by interest rate movements and that the decline in global rates over the last two decades is “likely to have been a factor in booming housing markets around the world and in New Zealand”.NZ experienced the most rapid increase in real house prices in the last 30 yea...

More Finance

Surcharge ban may not be a win for consumers
Finance

Peter Griffin: Surcharge ban may not be a win for consumers

There are winners and losers in the surcharge move.

Peter Griffin 30 Jul 2025
FNZ employee shareholders stake claim at $7.7b
Finance

FNZ employee shareholders stake claim at $7.7b

The claim has been lodged in the High Court at Wellington.

Victoria Young 29 Jul 2025
FMA warns lenders on mortgage fraud
Finance

FMA warns lenders on mortgage fraud

The FMA sees dangers for borrowers if lenders aren't vigilant.

Staff reporters 25 Jul 2025
‘Teflon Man’ Neil Quigley’s next big job
Finance Analysis

Pattrick Smellie: ‘Teflon Man’ Neil Quigley’s next big job

Is the RBNZ lining up a Canadian replacement for Adrian Orr?

Pattrick Smellie 23 Jul 2025