Housing Affordability Perspective: Housing Affordability Index

How is this different from HAM?

This measure uses the same household data from the HAM to create a housing affordability index. The only difference is that the data has been re-scaled, so that affordability for renters at the start of the time series is 1000. HAM Buy has been scaled so it remains in the same position relative to HAM Rent. Higher index values indicate that housing has become less affordable. The presentation of HAM as an index reflects that it is a relative measure of housing affordability and this also makes it easier to describe trends. This approach is also used by the Massey Affordability Index.

National

[image] National affordability graph

Figure 1: Housing affordability for potential first home buyer (Index Buy) and renter (Index Rent) households, national (March 2003 to March 2017)

At a national level, housing affordability for potential first-home buyers worsened 3% between March 2016 and March 2017.

Affordability for renter households nationally remained very similar between March 2016 and March 2017, improving by only 0.3% over that time.

Auckland City

[image] Auckland affordability graph

Figure 2: Housing affordability for potential first home buyer (Index Buy) and renter (Index Rent) households in Auckland City (March 2003 to March 2017)

Affordability for potential first home buyer households in Auckland City worsened by 2% between March 2016 and March 2017.

Affordability for renter households in Auckland City improved by 3% between March 2016 and March 2017.

Christchurch City

[image] Christchurch affordability graph

Figure 3: Housing affordability for potential first home buyer (Index Buy) and renter (Index Rent) households in Christchurch City (March 2003 to March 2017)

Affordability for potential first home buyer households in Christchurch City worsened by 3% between March 2016 and March 2017.

Affordability for Christchurch renter households worsened by 4% between March 2016 and March 2017.

Wellington City

[image] Wellington affordability graph

Figure 4: Housing affordability for potential first home buyer (Index Buy) and renter (Index Rent) households in Wellington City (March 2003 to March 2017)

Affordability for potential first home buyer households in Wellington City worsened by 8% between June 2016 and March 2017.

Affordability for renter households remained essentially unchanged in Wellington City between March 2016 and March 2017, improving by 0.2% over that time.

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