About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Thursday, November 21st, 10:39AM
rss
Latest Headlines

Supply answer to affordability problem

Auckland and Tauranga are among the most unaffordable cities in the world and boosting supply is the only solution, according to an international housing affordability survey.

Monday, January 22nd 2018, 12:00PM

by Miriam Bell

The latest annual Demographia's International Housing and Affordability Survey has found that Tauranga house prices are now 8.9 times the median income - making it "severely unaffordable".

This beats out Auckland where the median cost of a house is 8.8 times the median income, which is also "severely unaffordable". 

Housing is considered affordable when it costs about three times the average income.

While Auckland is ranked the ninth most unaffordable city in the world, it is actually a little more affordable than it has been in the past.

Last year it was ranked as the fourth most unaffordable city by the survey which covers 92 major centres around the world. 

The most “severely unaffordable” city in the world remains Hong Kong.

Tauranga is not a major centre, but it features in an extensive list of cities, and their house price to income ratios, from the countries surveyed.

Palmerston North was the most affordable New Zealand city in this list.

Survey co-author Wendall Cox says the housing affordability crisis results from demand that continues to exceed supply.

Nearly all of the severely unaffordable markets have urban containment policy or the equivalent and this has limited the building of low cost housing tracts, he says.

“There is an emerging understanding that more new housing supply is required to address housing affordability.”

To date, moves toward this have been largely limited to higher density infill, while leaving the urban periphery restrictions in place, Cox says.

“This seriously diminishes the potential for improving housing affordability, because the lowest land prices tend to be on the urban periphery.

“Unless urban fringe restrictions are relaxed enough to restore the competitive market for land, housing affordability is unlikely to improve and could continue to worsen.”

However, there is one government that seems determined to tackle the housing affordability issue – and that is New Zealand’s, he adds.

“The new government takes office with a mandate to squarely address both housing supply and infrastructure finance for new development. We should all hope them success.”

Just before Christmas, Housing and Urban Development Minister Phil Twyford announced that the implementation of the government’s flagship KiwiBuild programme, which aims to build 100,000 affordable starter homes and units, is now underway.

While it will take about a year to formally establish an urban development authority – which will be called the Housing Commission – an interim KiwiBuild Unit has been established.

The Unit, which will sit within the Ministry of Business, Innovation and Employment will enable building to get underway while the legislation to establish the Housing Commission is developed.

Read more:

Pre-Xmas housing policy rush 

Build more bloody houses – Little 

« Free Investment Property Showcase Events: Auckland, Wellington and ChristchurchLoss making sales on the rise »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Details confirmed for transitional licensing
    “And the other requirement is to have an internal complaint process as set out in the licence conditions. It’s good to see...”
    3 hours ago by Mr Slater
  • When is a client really a client?
    “And this subtle upgrade to the understanding of a complaint. Which changes the ISO definition from an expression of dissatisfaction...”
    3 days ago by JPHale
  • When is a client really a client?
    “Just released additional standards from the FMA. Record keeping potentially until 7 years after the death of the life...”
    3 days ago by JPHale
  • When is a client really a client?
    “@ReganT interesting that the two life advisers involved with the code working group discussion are the ones being argued...”
    3 days ago by JPHale
  • When is a client really a client?
    “In a previous reply I responded to the concept of payment as a trigger. I actually agree it’s not. While we don’t often...”
    4 days ago by regant
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 3.95 4.49
ANZ Special - 3.55 3.45 3.99
ASB Bank 5.20 ▼3.89 ▲4.05 4.39
ASB Bank Special - ▼3.39 ▲3.55 3.89
BNZ - Classic - 3.55 3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.35 3.35 3.35
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 ▼4.14 ▲4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - ▼3.39 ▲3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.55 3.39 3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.55 3.45 3.99
Median 5.34 4.02 4.09 4.39

Last updated: 21 November 2019 9:39am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com