NZ Housing Market Gets Boost with 5% Deposit Policy

The New Zealand National Party's recent announcement of a 5% deposit policy has been hailed as a game-changer in the country's housing market. According to Mike Hosking, this policy is the most consequential so far in the election campaign.

Hosking points out that for many young people, owning a house seems like an unattainable dream due to the high deposit requirements. However, with 5% of a $700,000 house being only $35,000, this barrier is significantly lowered.

The policy's success lies in its practicality and doability, making it likely that the Labour Party will copy it. Hosking argues that the Reserve Bank's fear of 'carnage' led to an unhealthy focus on 20% deposits, which was never necessary.