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Housing affordability down in major cities

The government’s latest data on housing affordability reveals a growing number of first time buyers have “below average income” after housing costs.

Wednesday, June 13th 2018, 4:25PM

by Dan Dunkley

The Ministry of Business Innovation and Employment released data tracking the number of first home buyers and renters with below average income, comparing March 2016 through to March 2017. It serves as a measure of affordability across the country. 

The figures show first home buyer households "with below average income after housing costs" rose from 77% in March 2016, to 80% in March 2017. The figures indicate a growing number of New Zealanders are struggling with their finances after paying mortgage costs.

New Zealand's renters remained in the same financial position, according to the data. The percentage of renter households with "below average incomes after housing costs" remained unchanged at 61% between March 2016 and March 2017, MBIE said.

The data reveals a growing number of first home buyers with below average income after housing costs across New Zealand’s major cities. In Auckland, the figure rose from 83% to 84%. In Christchurch the figure rose from 72% to 74%. While in Wellington, the percentage increased from 58% to 63%.

The numbers suggest Kiwis are stretching their available finances to get onto the property ladder. First time buyers have begun to take a greater percentage of the country's housing market in recent months, amid ongoing restrictions on property investors.

Recent data from the Reserve Bank revealed first home buyers took a 16% share of New Zealand’s home loans in April, their highest share in a decade. Banks including Westpac and ASB say more first time buyers than ever are turning to KiwiSaver to fund a deposit.

Tags: Auckland KiwiSaver LVR

« KiwiSaver boosts first home market: ANZAdviser hits out at commission disclosure proposals »

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Lender Flt 1yr 2yr 3yr
AIA 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
CFML Loans 6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 4.29 5.09 5.35
Kainga Ora 5.43 4.57 5.58 5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - 4.19 - -
The Co-operative Bank - Owner Occ 5.45 4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 4.79 5.69 5.95
TSB Bank 5.59 5.14 ▼5.79 6.15
TSB Special 4.79 4.34 ▼4.99 5.35
Unity 5.65 4.80 5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 19 May 2022 10:42am

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