Housing affordability for first-home buyers (FHBs) across the country is getting worse, according to the Government.
Latest Housing Affordability Measure (HAM) data released by the Ministry of Business Innovation and Employment (MBIE) shows that worsening affordability for FHBs is being driven by higher house prices in Auckland, Wellington, Christchurch, Hamilton and Tauranga.
At a national level, the share of potential FHB households with below average incomes after housing costs increased from 77% in March 2016 to 80% in March 2017.
In Auckland, the share of potential FHB households with below average incomes after housing costs increased from 83% in March 2016 to 84% in March 2017.
The trend is similar in Wellington, where the share of potential FHB households with below average incomes after housing costs went up from 58% to 63% in the current reporting period, while figures in Christchurch City were up from 72% to 74%.
In the previous HAM data release, affordability in Christchurch and Wellington was improving and Auckland’s affordability was largely stable.
By contrast, rental affordability was largely stable across the country. Rental affordability improved in Auckland and Tauranga City, was flat in Hamilton City and Wellington City, but worsened in Christchurch.
The HAM uses household-level data from the Statistics New Zealand Integrated Data Infrastructure (IDI) to provide a detailed picture of housing affordability trends, including at a territorial authority level (and ward level in Auckland).
Huge rise in KiwiSaver first-home withdrawals
First-home buyers on the rise in the provinces