Your article on high-priced state housing highlights the problems that result when government policy tries to dictate housing trends. Historically, when governments interfere in the market it tends to have the opposite effect to what is Intended.
The big leap backwards was when state house rents reverted back to 25 per cent of income, treating housing as somehow different to everyday products, and riot facing up to the fact that housing is a commodity just like any other, and if you offer housing at a cheaper price, naturally you will fuel demand.
While I strongly believe that we should have compassion for those less fortunate in our community, your article in which a $11 million house rents for just $75 a week, along with the fact that some tenants' rents are still being subsidised after 35 years, could sour that compassion somewhat especially those home owners who are struggling to pay more than 50 per cent of their incomes just to service a mortgage.
What really is surprising is the waiting list for state housing in Auckland is only 6500. I'm amazed it's not 10 times that number.
HARRY LAWSON
NAPIER
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