25 Jan 2011

NZ housing becoming less affordable

3:05 pm on 25 January 2011

An international survey says affordable housing in New Zealand is a thing of the past.

The annual Demographia International Housing Affordability Survey compares house prices with incomes.

It has concluded that the least affordable area in New Zealand is Tauranga-Western Bay of Plenty followed by Auckland, Christchurch and Wellington, all of which it classes as severely unaffordable.

Palmerston North, Napier-Hastings, Hamilton and Dunedin were for the first time rated as seriously unaffordable.

The survey says as late as the 1990s affordable housing could be found in nearly all the major metropolitan areas covered, but that is now a thing of the past in New Zealand, Australia and the United Kingdom, and in some cities in Canada, Ireland and the United States.

Australia has the most unaffordable housing in the world and Hong Kong is the most expensive city, the survey says.