Leaky home stigma, it is still a thing. Kinda.

The leaky homes crisis concerned a number of buildings built in the decade from the early 1990s to 2004 that suffered from weather-tightness problems.

New research showed buildings that have been re-clad are now selling at prices similar to those that have never leaked, but they still carry a stigma that can make them harder to sell.

It was described as the first time there has been comprehensive research into whether "post-remediation stigma" is a genuine phenomenon that affects property values.

The study's lead author was prompted to do the research after his own personal experience of buying a leaky home in Auckland, that has since been repaired.

Dr Michael Rehm, who is a senior lecturer in property at the University of Auckland, said he discovered that some buyers of former leaky homes remained sceptical that a building was actually fixed, and used that stigma to discount any offer they made.

He said his research showed that buildings finished in monolithic cladding, such as a plaster system with no joins, had a higher risk of leaking.

Those re-clad in this material tended to sell for an average price that was 6 percent lower than homes clad in weatherboard, for example.

Dr Rehm said he bought a terraced house soon after arriving in New Zealand in 2005. He said it was ironic that even though he taught on the subject, it was a shock to discover he had bought a leaky home.

Read the full article on Radio NZ here




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