Housing affordability, eh?

Sharon Zollner

Chief Economist New Zealand, ANZ

If you’re lucky enough to own your own slice of heaven in the land of the long white cloud you should consider yourself so.

The latest report on IMF housing affordability (which uses NZ data up to December 2015) shows New Zealand has experienced the worst deterioration in house price affordability (the house-prices-to-income ratio) in the world over the past six years.

" Affordability has declined further this year as New Zealand’s housing boom spread around the country while wage growth remained stagnant."
Sharon Zollner, Associate Director & Senior Economist, ANZ NZ

Affordability has declined further this year as New Zealand’s housing boom spread around the country while wage growth remained stagnant. Across the ditch, Australia came in at number 11.

While record-low interest rates have been a feature through much of the world in recent years, New Zealand has experienced stronger population growth than most and also under-built for a prolonged period following the global financial crisis.

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According to the IMF, real house prices in New Zealand grew 11 per cent in the past year, second only to Sweden on a global scale.

Source: OECD, IMF, ANZ Research

Sharon Zollner is an Associate Director & Senior Economist, ANZ NZ

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

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