A compact housing project touted as a tool to help bring housing prices down will itself be unaffordable to many families desperate to find a home in a fast-growing Waikato town.
Meridian Asset Management was granted resource consent by the Waipā District Council to build 10 housing units on one property at 47 Coleridge St, Leamington, in Cambridge.
Consultant Mark Chrisp, in his planning evidence to the council’s hearings committee presented on behalf of Meridian in mid-May, said the development met new policy expectations to increase housing density rather than use valuable agricultural land to build new homes.
“This proposal assists council in achieving those targets and also community wide by providing more housing supply to the market in an attempt to reduce housing prices,” Chrisp said.
Chrisp acknowledged properties had been selling “at the fastest pace” in Waipā. The median property price was $775,000 in May, lower than the $860,000 in April.
There were hopes among social services that the Meridian units would be affordable.
But when they were listed for sale on Trade Me on June 29, the asking prices were $875,000 for two-bedroom units and $1.005 million for the three-bedroom units, to be built by ZB Homes by mid-2022.
Waipā mayor Jim Mylchreest agreed the asking price was out of reach for those searching in the “affordable housing market”.
“The only way that this standard of development will help is when there is enough of them to free up first homes, as people move up the property ladder and free up their older homes.”
He said councils were unable to help until the Government enabled them to become community housing providers, giving them the ability to offer rent subsidies.
A group of neighbours to 47 Coleridge Rd opposed the compact housing development when it was considered for resource consent but the group had decided not to appeal to the Environment Court.
ZB Homes founder Zane Beckett, through Chrisp, did not wish to provide comment.
The Cambridge Committee of Social Services chairwoman Harriet Dixon said higher-density housing was needed in Cambridge.
“Unfortunately, the asking price for the properties in this [Meridian] development will be out of reach of most families in Cambridge.
“… we might see them purchased as investment properties and rented out, but due to the high price we feel that the rental price may be too high for most families to afford, too.”
Dixon said Cambridge needed alternative types of property developments in a “realistically affordable price range”.
Dixon is also manager of the Cambridge Community House, one of the organisations affiliated to the Committee of Social Services.
The community house was helping families now homeless because of high rental prices.
The median weekly rent in Cambridge is $520, and there is no emergency housing, with Work and Income was forced to send families to Hamilton to live in motels.
The community house is investigating transportable housing as one solution.
“I would love to hear from anyone in Cambridge who would be interested in hearing more about this project and how they can help.
“We are looking at a model of either the home, landowner purchasing one of the transportable homes and renting it out as a low rental option or allowing Cambridge Community House to rent the space to pop the property onto for emergency and long term housing.”