PROP385 Assignment Brief

Grouping, Length & Format

Number of group members: Minimum 2, Maximum 5 Self-assign on Canvas -> People -> Groups for Assignment at
https://canvas.auckland.ac.nz/courses/144873/groups#tab-27531 by 17 March 2026.

Written Report

• 3,500 – 5,000 words
• Word Count Exclusions:
  • Title page
  • Executive Summary
  • Table of Contents
  • References
  • Appendices
  • Tables and Figures
• Structured into six chapters (see below)
• APA 7th edition referencing required
• Submit as .docx or .pdf via Canvas

Presentation Video

• 8–10 minutes
• 8–10 presentation slides recommended.
• focusing on Chapters 4 and 5.
• Submit as an .mp4 video via Canvas.
• the video is a group submission, but it will be assessed individually.
  Make sure all members have made their presentations.

Assignment Overview

This group assignment requires students to produce a rigorous, evidence-based investigation into housing affordability issues in New Zealand. Housing affordability remains one of the most significant socio-economic challenges facing New Zealand. Over the past decade, housing prices and rents have experienced substantial volatility, particularly during and after the COVID-19 pandemic. Policy responses have ranged from large-scale urban upzoning initiatives to restrictions on foreign purchases and substantial interest rate adjustments.  Has New Zealand’s housing become more or less affordable? Why?

This assignment requires students to:

• Distinguish between perceptions and measured affordability outcomes
• Analyse primary and secondary datasets
• Evaluate policy effectiveness using evidence
• Propose well-justified solutions grounded in economic and institutional reasoning

The emphasis is on evidence-based reasoning, not opinion. Arguments must be supported by empirical data, credible literature, and clear analytical logic.

Exemplars and Professional Context

Several New Zealand institutions have produced influential evidence-based
reports on housing affordability that serve as strong exemplars for this assignment.

For example, Auckland Council (2014) analysed land supply and planning
constraints in Auckland, while The Treasury (2013) evaluated patterns and
trends of house prices, expenditures and home ownership over time and across groups based on two surveys.

These reports demonstrate clear problem framing, transparent data use,
critical policy evaluation, and evidence-based conclusions. They reflect the
professional standards expected of property and policy analysts.

However, they are all very outdated (published more than 10 years ago).

This assignment mirrors such real-world consultancy practice, requiring
students to produce structured, data-driven analysis comparable to professional reports on housing affordability issues.

Data Provided

1. Survey Data – mainly for Chapter 2

(available here, and guest presented in week 3)

About 100 raw data from a recently completed survey of young New Zealanders examining:

• Perceptions of housing affordability
• Current housing status
• Anticipated housing pathways over the next five years
• Views formed after pandemic-era housing volatility

2. Stats NZ Customised Census Dataset – mainly for Chapter 3

(available here and presented in week 4)

• House mortgage-to-household income ratios* (five quintiles)
• Rent-to-household income ratios (five quintiles)
• Census data covering approximately the past decade

Students are expected to analyse these datasets independently and integrate findings into the report.

Required Report Structure

Chapter 1: Introduction and Literature Review

• Background of housing affordability issues in New Zealand
• Conceptual definition(s) of housing affordability to be used
• Review of key academic and policy literature
• Explanation of why distinguishing perception from measured affordability matters
• Explanation of the approaches to be used in Chapter 4 and Chapter 5
  on the causes and the solutions of housing affordability issues.

Chapter 2: Public Perceptions of Housing Affordability

Using the provided survey data to discuss, but not limited to, the following:

• Analyse young New Zealanders’ views on affordability
• Examine expectations regarding housing pathways
• Identify patterns across demographics (if relevant)
• Compare findings with other opinion-based sources (e.g., surveys, reports)

This chapter should critically discuss how perceptions may differ from objective affordability metrics.

Chapter 3: Measured Housing Affordability Trends

Using the customised Stats NZ dataset to discuss, but not limited to, the following:

• Analyse and plot graphs of mortgage-to-income ratios* (by quintile)
• Analyse and plot graphs of rent-to-income ratios (by quintile)
• Identify and explain the identified affordability trends over the past decade
• Compare findings with alternative affordability indicators where relevant

This chapter presents the actual affordability trajectory and examines
distributional differences across income groups.

Chapter 4: Causes of Affordability Changes

Identify and evaluate drivers of housing affordability changes, supported by evidence.

These may include:

• Housing supply dynamics
• Land use regulation and upzoning
• Credit conditions and interest rates
• Construction costs
• Migration flows
• Investor behaviour
• Macroeconomic factors

Arguments on at least ONE core cause must be supported by empirical evidence
(quantitative or qualitative).

Chapter 5: Evaluation of Policy Measures and Proposed Solutions

Critically assess at least ONE policy intervention attempted in the past decade, including:

• Large-scale upzoning in Auckland (increased housing supply)
• Overseas Investment Act (restrictions on foreign buyers)
• Ultra-low interest rate environments during the outbreak of the pandemic
  and subsequent high interest rate tightening

For each policy considered:

• Did it materially affect affordability?
• Why?
• What is the supporting evidence?

Students must also propose ONE alternative solution.

Proposal must include:

• Clear economic logic – why it can solve the problem better than the attempted ones
• Institutional feasibility – what are the conditions that can empower the proposal viable?
• Evidence or theoretical justification for effectiveness

Chapter 6: Conclusion

• Summarise key findings
• Distinguish between perception and measured reality
• Reflect on policy implications
• Highlight future research directions

Learning Objectives

By completing this assignment, students will be able to:

• Apply evidence-based reasoning to complex housing market issues
• Analyse and interpret housing affordability datasets
• Distinguish public perception from empirical measurement
• Evaluate policy interventions using data
• Develop structured, professional reports suitable for property-sector analysis
• Communicate analytical findings effectively in written and oral formats

References

1. Auckland Council (2014). Housing supply, choice and affordability – Trends,
   economic drivers, and possible policy interventions, by Chris Parker,
   Chief Economist, Auckland Council, New Zealand.
   https://knowledgeauckland.org.nz/media/2nyf2bg0/housing-supply-choice-and-affordability-october-2015_parker-c.pdf
2. The Treasury (2013). Housing Affordability in New Zealand: Evidence from
   Household Surveys (WP13/14), by David Law and Lisa Meehan,
   New Zealand Productivity Commission, New Zealand.
   https://www.treasury.govt.nz/publications/wp/housing-affordability-new-zealand-evidence-household-surveys-wp-13-14#abstract

* updated on 28 April 2026 from price-to-income ratios to mortgage-to-income ratios.

Marks Distributions of the Written Report (30%)

Marks Distributions of the Presentation Video (10%)

Academic Integrity

This is a group project. Collaboration within groups is expected; however:

• All sources must be properly cited
• Data analysis must be original
• AI tools are ONLY allowed to be used for language editing.

PROPERTY 385 Assignment Rubric