It's no secret that millennials are struggling when it comes to finding affordable housing, and according to new data from Apartment List, 72 percent say affordability is the primary obstacle to purchasing real estate. But in New Zealand, this isn't the only problem. Prime Minister, Jacinda Ardern says the number of foreigners moving over and buying homes is driving up prices — something which is preventing many Kiwis from affording their first home.
The solution? Banning foreigners from buying houses in New Zealand, of course. The ban, which will be effective early 2018, is meant to reduce demand in what the country are calling a housing crisis. In the past 10 years alone, housing prices have increased by over 50 percent across the nation, with prices in Auckland having nearly doubled in that same period. This makes it the fourth least affordable housing market in the world, after Hong Kong, Sydney, and Vancouver.
A large proportion of the real estate in New Zealand is owned by China and the United States — with rumors that some of Silicon Valley’s wealthiest people are buying homes in the country to prepare for “Doomsday” situations. The ban will not apply to Australians or legal residents of New Zealand.