Home ownership is becoming more affordable for first-home buyers in most parts of the country, according to new figures.
An article by interest.co.nz shed light on the latest Home Loan Affordability report, which suggests improving housing affordability but notes that improvements are so small that most aspiring first-home buyers probably wouldn't notice the difference.
The report estimates that typical first-home buyers would need to set aside 22.37% of their weekly income for mortgage payments on a lower quartile-priced house. This is still well below the 40% threshold at which housing is considered unaffordable.
The report highlighted the Auckland Region and Queenstown as the two big exceptions.
Queenstown is the most expensive place in the country for first-home buyers, with the Real Estate Institute of New Zealand’s (REINZ) low quartile price hitting a record high of $807,500 in July. This meant mortgage payments on a lower quartile-priced home in the town would eat up 57.15% of the net pay of typical first-home buyers.
The Auckland Region, meanwhile, has seen the lower quartile selling price leap to $660,000 in July.