DTIs set to restrain housing-debt-led economic rebound

Many thanks to subscribers for your patience and support while I’ve been off work. My mum died in Melbourne last Sunday, and her funeral was held there on Friday. I appreciated being able to spend time with my mum before she died, and with my family and Lynn over the last couple of weeks.

Kia ora. Long stories short, here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Monday, October 21.

1. The Government’s economic strategy is dependent on lower interest rates fueling higher household borrowing and a resurgence in the housing market, but the Reserve Bank’s new Debt to Income multiple controls may prove a stumbling block over the next couple of years.

2. In the scoop of the day, it turns out reports of imminent Government intervention in Wellington City Council were based on briefings by unnnamed sources, rather than more substantial sourcing, Colin Peacock reported yesterday for RNZ’s MediaWatch.

3. In the deep-dive of the day, Farah Hancock has written an excellent deep-dive piece via RNZ about the changes to the Resource Management Act being shunted through by the Government.

4. In solutions news, the Victorian Government announced plans for 50 new higher-density housing zones around train and tram stations that could drastically change the look of Melbourne's suburbs. ABC.

5. In number of the day, AAP reported 36,721 New Zealanders had acquired Australian citizenship in the 15 months since ANZAC Day last year when Anthony Albanese's government allowed Kiwis access to an Australian passport after four years of residency.

6. The chart of the day shows the number of New Zealanders on a main jobseeker, disability or sickness benefit hit a record high last week.

(There is more detail, analysis and links to documents below the paywall fold and in the podcast above for paying subscribers. If we get over 100 likes we’ll open it up for public reading, listening and sharing.)

Relying on higher household debt to fill the fiscal hole

Big Govt spending cuts need replacing to return to GDP growth