The latest Home Affordability Report shows an overall decline in national affordability over the most recent quarter, largely driven by soaring house prices and an increasing interest rate.
The latest Home Affordability Report shows an overall decline in national affordability over the most recent quarter, largely driven by soaring house prices and an increasing interest rate.
The latest Rental Report shows a national deterioration in rental affordability both quarterly and annually, with declines in rental affordability in seven of the 16 regions in the last quarter.
Rising house prices and decreasing income lead to decline in home affordability
The report shows median house prices across the country increased by 5.1 per cent in aggregate.
Dr Arshad Javed
Professor Graham Squires
The latest Massey University Home Affordability Report shows an overall decline in national affordability over the most recent quarter. This was largely driven by soaring house prices and income levels dropping in the majority of the regions as well as nationally, by three per cent.
The report, which covers the quarter from February 2021 to May 2021, shows median house prices across the country increased by 5.1 per cent in aggregate. This, combined with a decrease in incomes in many regions, has seen national home affordability decline by 6.8 per cent. National house price-to-income ratios have also deteriorated, with house prices moving from 11.4 to 12.4 times annual wages.