Credit: Original article can be found here
The Government has told the Reserve Bank to take house prices into account when considering monetary policy. The move has implications for property investors and speculators.
Auckland is the fourth least affordable city for housing in the 2021 annual Demographia international housing affordability report.
The report ranks 92 major housing markets – with populations of more than one million – in eight countries based on the median multiple, which measures median house price divided by gross median household income.
Auckland houses are less affordable than those in all but three other cities from eight countries surveyed for the 2021 Demographia international housing affordability report.
It looked at housing affordability in Australia, Canada, Hong Kong, Ireland, New Zealand, Singapore, UK and the US.
According to the recently published 2021 report, in Auckland the median multiple is 10 – in other words, median house prices are 10 times the gross median household income.
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Least affordable city in the survey is Hong Kong, with a median multiple of 20.7, then Vancouver at 13, followed by Sydney at 11.8.
In the 2020 Demographia report, Auckland was the sixth most unaffordable major market, level-pegging with Toronto at 8.6.
According to the latest report from CoreLogic, Auckland house prices rose 11 per cent in the past year to an average of $1.16m.