“flee the city to provincial New Zealand”

Auckland is now in the top 10 of least affordable housing in the world, when the median income is compared against the median house price.

The average Auckland home is rising in value by nearly $300 a day more than what most workers earn in a 9-to-5 shift.

Newly released figures analysed by the Weekend Herald show the standard Auckland house added $427 a day in capital gain in the 12 months to September.

But Auckland workers earned just $132 a day, according to newly published median wage figures from Statistics New Zealand – meaning house-price growth is outstripping people’s earnings by $295 a day, or more than $100,000 a year.

The grim figures shed new light on the deteriorating affordability of Auckland housing, which has been labelled unsustainable by the Reserve Bank and at risk of a steep price reversal.

It would now take the average family nearly 10 years of household income to buy a median-priced $771,000 Auckland home – putting the city of sails squarely among the 10 most over-valued housing markets in the developed world.

Experts warn the situation is shutting a generation out of home ownership, forcing them to become perennial renters or to flee the city to provincial New Zealand in search of lower-cost housing.

Shows you the contempt that journalist Lane Nichols has for “provincial” New Zealand.  Apparently you “flee”.   Become an Auckland refugee even.   

he typical Auckland home is now rising in value each year more than the salary of an entry-level doctor or head-of-department teacher leading 10 staff.

The price growth is more than three times the annual pay of an entry-level nurse, more than twice that of a teacher with 10 years’ experience and nearly $100,000 more than a constable earns after five years in the police.

Prices are being driven by a severe shortage of properties, record high inward migration and historically low interest rates. Auckland Council and the Government are pinning hopes on the Housing Accord to fast-track thousands of new homes, while new measures will restrict the impact of investors and keep tabs on foreign speculators.

Meanwhile, an Auckland Council committee agreed this week on a new affordability target that would halve the ratio of household income to house prices by 2030 by making it simpler to get new projects off the ground.

“This would be achieved primarily by reducing costs to deliver housing and increasing the scale and breadth of housing options – including attached dwellings – for the bottom half of the market,” council chief economist Chris Parker said.

Loan Market mortgage adviser Bruce Patten said soaring prices had made it much harder for anyone new to the market trying to break in.

You know, I’ve never been able to afford a Maserati either.  But I’ve found a way to get transport.   If you catch my drift.   All this is great news for property owners in Auckland – their equity is going through the roof.  But it is always couched in terms where a couple in their twenties aren’t able to get started on the property ladder.   Well, back in the day, there were areas of Auckland you couldn’t get onto the property ladder.  Now it is Auckland itself.   It’s called a market, and you can stamp your feet as much as you like, but if you want to get started on the property ladder, go do it elsewhere.

 

– Lane Nichols, A newspaper


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