In 2018, the New Zealand Government made changes to its Accommodation Supplement policy. The geographic area allocation to Accommodation Supplement areas was changed. There were also substantial increases in the maximum support available in Accommodation Supplement areas.
The changes meant large differences in Accommodation Support increases for people in locations straddling boundaries around shifting Accommodation Supplement areas. This research examines the changes in rent payments for recipients located on either side, and near to, such boundaries.
This research examines if the rents on the sides of boundaries with larger increases in accommodation support increased more than rents on the other sides.
We found Accommodation Support increased on average $14-$19 per week more for recipients on the sides of boundaries with larger increases relative to those on the other side. Raw rent increases were about $9 per week on average more on the higher increase sides of boundaries.
But the rent changes were negligible when we considered observed and unobserved characteristics of Accommodation Support recipients.
We conclude there is little evidence the relative increases in accommodation support led to stronger increases in rents across these contrast-boundaries.
Hyslop, Dean and Dave Maré. 2022. “The Impact of 2018 Families Package Accommodation Supplement area changes on housing outcomes”. Motu Economic and Public Policy Research. Wellington, New Zealand.