What is the Housing Affordability Measure for renters?


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

[image] Housing Affordability rent equation

The Measure identifies the proportion of renters in a particular area whose income after housing costs is above or below the national median. The Measure is based on real incomes and rents of real households.

Benefits of the Measure

[image] Rent graphThe 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 renters?

Renters in Auckland

Flo & Joe & two children, in 2003

 

Flo & Joe & two children, in 2016

[image] IncomeTotal household income
$1,270 / week

Minus household costs

[image] MortgageRent
$300 / week

 [image] Rent - Flo and Joe

[image] IncomeTotal household income
$2,246 / week

Minus household costs

[image] MortgageRent
$480 / week


What's left over?

Flo & Joe's income after housing costs

[image] Rent - Flo and Joe 2003

Couple, two children - 2003 New Zealand average income after housing costs

 

What's left over?

Flo & Joe's income after housing costs

[image] Rent - Flo and Joe 2016

Couple, two childen - 2016 New Zealand average income after housing costs


Renters in Auckland: Housing Affordability Measure

key-above.png Rental households with above average leftover income after housing costs

key-below.png Rental households with below average leftover income after housing costs

[image] Rent Auckland

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

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