22 Apr 2015

Home affordability gap largest in 25 years

8:09 pm on 22 April 2015

The home affordability gap between Auckland and the rest of the country is the largest it has been in 25 years.

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Photo: RNZ / Diego Opatowski

Massey University's latest Home Affordability Report shows living in Auckland is now 49 percent less affordable than living in other parts of the country.

It found there was a six percent improvement in affordability across New Zealand from December last year to February this year.

However affordability slid by 0.3 percent in Auckland, 4 percent in Otago, 2.5 percent in Nelson/Marlborough and 1.2 percent in Taranaki.

The report's author Professor Paul Gallimore said in the past year wages in Auckland rose less than the national average, but the median house price rose by almost 14 percent or $83,000.

He said there was nothing to suggest things would improve in Auckland any time soon.

"You know it all very much depends on the next 12 months about how that supply and demand equation does work out...but it is time consuming process to change significantly the supply into a housing market so I would expect this trend to continue."

Professor Gallimore said while the latest survey showed wage rises in Auckland falling behind the rest of the country, this should not be seen as indicative of a long term trend.

The most affordable region was Southland which is 52 percent more affordable than the national average.

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