The Green Building Council is proposing a housing plan it says would be a quick-fire way to stimulate the economy in the wake of Covid-19.
A new report suggests doubling the Warmer Kiwi Homes scheme to 100,000 houses and add in ventilation, drainage and draught stopping measures. Photo: 123RF
In a new report, it urges the government to invest in warmer homes, which it said could save billions of dollars, create jobs, save lives and lower carbon emissions.
Forty percent of New Zealand's homes are damp and mouldy and one in six people have respiratory problems because of it - some of the worst statistics in the OECD, the council said.
The government and councils have adopted some schemes to help shift the statistics, including the Warmer Kiwi Homes Programme.
But the council's chief executive Andrew Eagles said now is the time to really make a dent.
"It's highly likely that residential construction will decline over the next few months and there's going to be unemployment from other sectors," he said.
"Here's an opportunity to get New Zealand cracking again and improve the health of lots of Kiwi households."
The report has three main recommendations.
First, to double the Warmer Kiwi Homes scheme to 100,000 houses and add in ventilation, drainage and draught stopping measures to the plan.
It estimates that expanding the scheme would cost the government about $260 million.
The second, for councils to introduce voluntary targeted rates schemes, which allow home owners to pay off heating and insulation through their rates.
And finally, to promote the HomeFit standard, to encourage homeowners to invest in making their houses healthier and more energy efficient.
Eagles said adopting these recommendations quickly would not only stimulate the economy but improve health.
"It's really good for the supply chain, it's absolutely transformative in terms of health outcomes in terms of eliminating energy hardship, and it helps create the jobs we're going to need in the future."
He said it would create a net benefit of between $1.5 billion to $3.1 billion, due to savings in health costs and energy.
That money can then feed back into the economy in other ways, he said.
Eagles challenged the government to come up with a better cost-benefit example for its post-Covid, 'shovel ready' projects.
"We can build better pipes and roads but they would be really hard pushed to show something that so substantially returns for New Zealanders, so substantially reduces costs in our health sector and so substantially reduces carbon, and delivers jobs quickly," he said.
Eagles added that the recommendations align with the government's major policy initiatives around energy efficiency, sustainability and housing.
Savings on health costs
Shamubeel Eaqub Photo: Screengrab / Facebook
Economist Shamubeel Eaqub helped crunch the numbers for the report .
Much of the existing housing stock is unfit and there are big knock-on effects from that, he said.
Eaqub said warmer homes will mean more money in people's pockets as they save on energy, and a drop in health costs to the government.
"This is a great opportunity while the government will be investing in many projects, for us to also invest in things that give us long-term, ongoing benefits, in terms of health of our vulnerable citizens," he said.
Wellington Regional Councillor and chair of its Healthy Housing Group Roger Blakeley agrees the proposal would be a win for everyone.
He said it would be especially beneficial for the thousands of children who end up in hospital every year - 6000 in the Wellington region alone over the last four years.
"That's a huge positive benefit for us as a nation."
Dr Blakeley said encouraging more councils and homeowners to take part in the voluntary targeted rates scheme makes sense.
"It's a painless way of people being able to afford to put in these proper insulation measures, so again it's one of these win-win solutions that we are delighted to have people take advantage of."
The report also shows there will be $60 million worth of carbon savings, if the proposal is adopted.
The Green Building Council has requested a meeting with the Housing Minister Megan Woods to discuss the report's findings.
In a statement, the minister said the government would consider the report but that they are already in agreement with the Green Building Council about the positive impacts of insulation and energy efficiency.
"Which is why we invested over $140 million into the Warmer Kiwi Homes programme that provides insulation and heating grants to create warm, dry homes," Woods said.
"The government is also investing in further work through our public housing agency Kāinga Ora, which has a significant retrofit programme to raise the efficiency and insulation standards of homes, and all new builds must meet energy efficiency standards."
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Read the report here: