OK - my disclaimer now; this will not be the last time I harp on about State Housing in New Zealand as the current system is one of my top sore points; and also I believe quite a good example of the issues in the whole Labour / Socialist philosophy.
The family earning over $100 K a year and still being subsidised by being in a state house:
The first thing I have to ask is would we (or should we) still care if they were paying (true) market rental? I would say not - then the argument can only resolve again to whether the Government should be a landlord; which I say they should in a low income market if there is an insufficient supply of low income housing for the good of the country.
In terms of the last statement - the next important question to mull over is:
Would we see a shortage of 11,000 homes (as currently) if state housing was supplied on a market rental basis, at a level only designed around liquidity (which I would postulate as being less than the current supply of state housing)?
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