A recent report by Westpac reveals that around 10,000 new homes need to be constructed in New Zealand so that the growing population can be accommodated. According to the report, this move will also be beneficial in solving the present housing problem.

The number of new houses in New Zealand has decreased about 50% after the year 2009, but the population has witnessed an increase of 0.4%.This is the third such squeeze since proper data was available from the year 1960. The report suggests that during the year 2009 the average number of people per house has increased from 2.52 to 2.55.

Thus, according to the report the solution to the problem is a speedy increase in the construction activity. The report discloses that the present rate of construction of houses will be adequate to keep the number of people per house stable during 2010. However, it will not be sufficient to bring the rate down.

The report also says that those people, who are in favor of a lesser increase in housing, would have a tough time in clarifying where the people are going to live.

Salvation Army had reported earlier this year that a brake in the building sector has caused a shortage of around 6000 homes in Auckland.