Housing Affordability Perspective: Housing Percentage Measure

How is this different from HAM?

The Percentage Affordability Measure uses the same data about households that HAM does, but instead of comparing income after housing costs for the average New Zealand household, it checks whether each household is spending more or less than 30% of their income on housing costs (or would be spending more than 30% in the case of potential first home buyers). The Percentage Affordability Measure does not imply that spending 30% of household income is or is not ‘affordable’. Determining affordability depends on each household’s circumstances and expectations of what qualifies as a socially acceptable standard of living.

This series is much newer than the other series we have produced and may need more development.

National

[image] National percentage measure graph

Figure 1: Share of potential first home buyer (Percent Buy) and renter (Percent Rent) households spending over 30% of their incomes on housing, national level (March 2003 to March 2017)

At a national level, the share of potential first home buyer households who would be spending over 30% of their income on housing costs increased from 51% in March 2016 to 57% in March 2017.

At a national level, the share of renter households spending over 30% of their income on housing costs increased from 28% in March 2016 to 29% in March 2017.

Auckland City

[image] Auckland percentage measure graph

Figure 2: Share of potential first home buyer (Percent Buy) and renter (Percent Rent) households spending over 30% of their incomes on housing, Auckland City (March 2003 to March 2017)

The share of potential first home buyer households in Auckland City who would be spending over 30% of their income on housing costs increased from 69% in March 2016 to 73% in March 2017.

The share of renter households in Auckland City spending over 30% of their income on housing costs remained unchanged at 30% between March 2016 and March 2017.

Christchurch City

[image] Christchurch percentage measure graph

Figure 3: Share of potential first home buyer (Percent Buy) and renter (Percent Rent) households spending over 30% of their incomes on housing, Christchurch City (March 2003 to March 2017)

The share of potential first home buyer households in Christchurch City who would be spending over 30% of their income on housing costs increased from 48% in March 2016 to 51% in March 2017.

The share of renter households in Christchurch City spending over 30% of their incomes on housing costs increased from 25% in March 2016 to 26% in March 2017.

Wellington City

[image] Wellington percentage measure graph

Figure 4: Share of potential first home buyer (Percent Buy) and renter (Percent Rent) households spending over 30% of their incomes on housing, Wellington City (March 2003 to March 2017)

The share of potential Wellington City first home buyer households who would be spending over 30% of their income on housing costs increased from 41% in March 2016 to 49% in March 2017.

The share of renter households in Wellington City spending over 30% of their income on housing costs remained unchanged at 28% between March 2016 and March 2017.

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