The Ministry of Business Innovation and Employment’s new housing affordability measure is under fire from Labour which says the index is flawed
The Ministry of Business Innovation and Employment’s new housing affordability measure is under fire from Labour which says the index is flawed.
When it was launched just over a month ago, the MBIE said that it’s Housing Affordability Measure (HAM) was an ‘experimental statistical series’ and would be constantly monitored for accuracy and integrity.
But the opposition says that it is far from accurate and should be re-issued, claiming that the data is out of date, and the measure ignores the need to save a deposit.
“Leave it to Nick Smith to make a pig’s ear out of housing, once again,” said Labour’s Housing spokesperson Phil Twyford. “A measure of home affordability that assumes home buyers get a 100% 30-year mortgage at a rate well below what any first home buyer can get is completely out of touch with reality.”
The MBIE has hit back at the claims, highlighting that HAM was always meant to be reviewed and improved.
"It is true the RBNZ disagreed with the statistical series used, but that doesn't make it incorrect. Our analysts stand by the integrity of their work," an MBIE spokesperson told the NZ Herald.
CoreLogic Senior Research Analyst, Nick Goodall, commented when the index was released that it would be a good addition to the data available, but suggested that it would not be used in isolation.
“We consider that when used in conjunction with other measures/reporting, it will be a very useful tool for understanding the property and rental markets and the forces driving them,” Mr Goodall said.
When it was launched just over a month ago, the MBIE said that it’s Housing Affordability Measure (HAM) was an ‘experimental statistical series’ and would be constantly monitored for accuracy and integrity.
But the opposition says that it is far from accurate and should be re-issued, claiming that the data is out of date, and the measure ignores the need to save a deposit.
“Leave it to Nick Smith to make a pig’s ear out of housing, once again,” said Labour’s Housing spokesperson Phil Twyford. “A measure of home affordability that assumes home buyers get a 100% 30-year mortgage at a rate well below what any first home buyer can get is completely out of touch with reality.”
The MBIE has hit back at the claims, highlighting that HAM was always meant to be reviewed and improved.
"It is true the RBNZ disagreed with the statistical series used, but that doesn't make it incorrect. Our analysts stand by the integrity of their work," an MBIE spokesperson told the NZ Herald.
CoreLogic Senior Research Analyst, Nick Goodall, commented when the index was released that it would be a good addition to the data available, but suggested that it would not be used in isolation.
“We consider that when used in conjunction with other measures/reporting, it will be a very useful tool for understanding the property and rental markets and the forces driving them,” Mr Goodall said.
