Auckland homes most unaffordable

Last updated 13:23 30/06/2014

Relevant offers


What happens to low income kids when you give their parents some money? Freshly single? Here's how to reach financial freedom Chinese buyers desert Auckland market, brokers say Renting continues to outstrip home ownership growth When it comes to wills, there may not always be a way, court rulings show Lending rules may hit rental supply Ten ways to stop throwing your money away Event Cinemas' $1 million competition misleads consumers, watchdog says Families forced into cremation by lack of funds Planning rules forcing Aucklanders to build bigger houses

Housing became less affordable over the past year, as rising interest rates and house prices outpaced pay rises a new report shows.

The latest Massey University home affordability report shows the University's all districts national affordability index has deteriorated by 7.6 per cent in the 12 months to May.

"There was no real surprise in this result because the average weekly wage increase of $34.53 was not enough to offset a $38,000 increase in the national median house price and an increase in the average mortgage interest rate from 5.57 per cent to 5.64 per cent," Professor Bob Hargreaves of the university's school of economics and finance said.

Southland had had the biggest improvement in affordability (up 14.4 per cent), followed by Taranaki (8.4 per cent), Manawatu/Wanganui (6.2 per cent), Nelson/Marlborough (2.2 per cent) and Otago (0.8 per cent).

Auckland was the most unaffordable region but seven regions had a fall in affordability, with the biggest decline in Central Otago/Lakes District (down 12.2 per cent).

Canterbury/Westland houses were 10.6 per cent more expensive and Auckland's were 9.1 per cent. In Wellington and the Waikato, affordability declined by 3.4 per cent and 4.8 per cent respectively.

Hargreaves expected housing affordability to decline further this year as the cost of servicing a mortgage increased.

He also said the widening gap between larger urban centres and the provinces which was "mainly a function of differential house prices between regions".

Ad Feedback

- Stuff


Special offers

Featured Promotions

Sponsored Content