Bernard Hickey: How to pop a housing bubble

Real Estate Institute figures out this week confirmed the Auckland housing market is running hot through the winter and the heat from that “halo” is spreading around the country.

The immediate reaction is that this can’t last and eventually sanity will prevail, but it’s worth carrying through with a thought experiment that looks at some of the key drivers of the housing market – interest rates, migration and housing supply.



If sanity doesn’t prevail and Auckland house prices keep rising, could the Government kickstart more building to help the supply problem? Photo / Michael Craig