In New Zealand national house prices have jumped by $30,000 in the last year. A new Auckland Council report maps the rise in Auckland house prices over the last 15 years and relative deterioration in affordability for first-home buyers. To read the full story by Lane Nichols in the NZ Herald click here.
“The share of sales categorised as affordable has fallen substantially during the study period, from 74 per cent in 1999 to 39 per cent in 2013,” the Auckland’s Housing Market: Spatial Trends in Dwelling Prices and Affordability for First Home Buyers report warns.
Overall, 95 per cent of Auckland areas measured in the report showed an absolute decrease in affordability over the study period.
Southern and western Auckland had proportionally more affordable house sales, which had been more widespread across Auckland in the study’s first two years. The Auckland Council report defined “affordable” housing as housing costs of less than 30 per cent of a first home buyer’s total household income. First home buyers were defined as an employed couple aged 25-34, with a 10 per cent deposit on a 30-year loan. Many areas around the urban periphery in northern and western Auckland have experienced relative decreases in affordability when compared to Auckland as a whole.
Auckland’s median house price has surged from $262,000 in June 2002 to $615,000 last month – fuelled by a shortage of properties & land, construction costs & immigration pressures.
Lower interest rates since the global financial crisis had made some areas temporarily more affordable – underlining the link between interest rate changes and the ability of homeowners to service mortgage costs. Auckland’s median house price has surged from $262,000 in June 2002 to $615,000 last month – fuelled by a shortage of properties and land, construction costs and immigration pressures.
Auckland’s housing was categorised as “severely unaffordable” in this year’s Demographia survey, putting acute pressure on low and middle income earners. A report released yesterday by Massey University found affordability in Auckland deteriorated by 14.4 per cent in the last year alone – the worst result nationwide.
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