Auckland’s housing affordability worsened by almost a quarter in the year ending February 2015 and the difference between it and the rest of the country is at a 25-year high.
While the deterioration in the country’s biggest city was just 0.3 per cent in the last quarter in Massey University’s Home Affordability Report its annual rate was more than double the national figure.
“Houses in Auckland are now over 22 per cent less affordable while, for the country as a whole, the annual deterioration in affordability is only 10.4 per cent,” said Professor Paul Gallimore from Massey’s School of Economic and Finance.
“These figures underline the ongoing two-track housing experience of New Zealanders.”
In Auckland, wages rose less than the national rate over the year, but house prices increased by a median $83,000, he said.
Affordability improved nationally by six per cent between November and February with eight of the 12 regions showing an improvement.
“Our largest city is now 49 per cent less affordable than the rest of the country – and that’s a larger gap than we’ve had at any other time in the 25-year history of the Massey Home Affordability Report,” Prof Gallimore said.
- National affordability 10.4 per cent worse (annual)
- National affordability six per cent better (quarter)
- Quarterly declines for Auckland, Otago, Nelson/Marlborough and Taranaki
- Quarterly improvement for Northland, Waikato/BOP, Hawke’s Bay, Manawatu/Whanganui, Wellington, Canterbury/Westland, Central Otago Lakes and Southland
- Auckland least affordable region
- Southland most affordable region.