What is the Housing Affordability Measure for potential first home buyers?


The Housing Affordability Measure compares the income after housing costs of potential first home buyers in different parts of New Zealand to the national median income after housing costs for all households.

Housing affordability measure

The Measure identifies the proportion of potential first home buyers in a particular area whose income after housing costs is above or below the national median. The Measure is based on real incomes of real households.

Benefits of the Measure

[image] Benefits of the measure The Housing Affordability Measure shows a trend, which supports central and local government to identify and respond to affordability challenges that are specific to each housing market.


What does this mean for potential first time buyers?

Potential first home buyers in Christchurch

Dan & Fran, in 2003

 

Dan & Fran, in 2016

[image] IncomeTotal household income
$1,055 / week

Minus household costs

[image] MortgageMortgage
$190 / week

[image] InsuranceHome insurance
$5 / week

[image] RatesRates
$15 / week

[image] Dan & Fran

[image] IncomeTotal household income
$1,803 / week

Minus household costs

[image] MortgageMortgage
$420 / week

[image] InsuranceHome insurance
$12 / week

[image] RatesRates
$40 / week

What's left over?

Dan & Fran's income after housing costs

whats-left-over-2003.png

Couple, no children - 2003 New Zealand average income after housing costs

 

What's left over?

Dan & Fran's income after housing costs

whats-left-over-2016.png

Couple, no children - 2016 New Zealand average income after housing costs


Potential first home buyers in Christchurch: Housing Affordability Measure

key-above.png Potential first home buyer households with above average leftover income after housing costs

key-below.png Potential first home buyer households with below average leftover income after housing costs

affordability-graph-christchurch.png

tick.pngThe Measure shows the trend of affordability over time.

cross.pngIt does not tell us how much income after housing costs a household needs to afford a home.