The entire country of New Zealand is being made to pay for Auckland’s housing inflation problems. This ‘super city’ has an average house price of circa $1 million and has seen inflation in excess of 300 per cent over the last four years.

The problem is a basic supply and demand imbalance that has grown over the years and which has recently become an issue that necessitates government intervention. Western governments typically eschew interference in ‘the market’ other than at a macro-economic or fiscal level. But when circumstances combine, as has happened in…