Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Auckland houses severely unaffordable for 10th year: survey

International survey ranks Auckland houses severely unaffordable for 10th year in a row

Jan. 20 (BusinessDesk) – Auckland house prices remained “severely unaffordable” for the 10th year in a row in the American survey, Demographia, which compares housing costs in nine mainly English-speaking countries.

Produced by Wendell Cox, an Illinois-based opponent of urban planning and proponent of private cars over public transport and Christchurch-based urban planner Hugh Pavletich, the Demographia report contends that restrictive urban planning is a principal cause of high housing prices relative to incomes.

“The central government of New Zealand has recognised the problem and is pursuing strategies to open up land supply and reduce housing costs,” says the newly published report on 2013 housing affordability trends, which ranks Auckland housing as the eighth most unaffordable of the 360 cities surveyed.

It uses Statistics New Zealand, Real Institute of New Zealand and census data for local house price data to conclude that only New Zealand and Australian major cities have the distinction of being rated severely unaffordable throughout the survey’s 10 year history.

Demographia ranks housing costs in the US, Canada, UK, Hong Kong, Singapore, Japan, Australia, Ireland and New Zealand and uses a “median multiple” approach that relates housing costs to household income. Markets ranked above 5.0 on that scale are judged “severely unaffordable.”

Auckland is ranked 8.0, making it the seventh least affordable of the 85 centres surveyed with populations of more than one million. Tauranga scored a median multiple of 6.6, with Christchurch at 5.8 the next most unaffordable centre. Wellington is ranked 5.5, the national median, with Dunedin at 4.8 and Manawatu/Palmerston North at 4.5 the only areas “seriously” rather than “severely” unaffordable.

By comparison, Sydney ranks 9.0, Melbourne 8.4, and Australia’s national median is 5.5. Among the most affordable cities are in the US; Pittsburgh (2.3), and Atlanta and Indianapolis at 2.7. Hong Kong topped the table, with a median multiple of 14.9.

“House prices have risen at much greater trajectories than household incomes in many markets,” the report’s commentary says. “This has invariably been associated with urban containment policy and is most evident in Australia, New Zealand and United Kingdom and some markets of Canada and the United States.

“All markets rated severely unaffordable have more restrictive land use (principally urban containment) policies, which means that no markets rated severely affordable have liberal land use policy. The same has been true over the entire decade of Demographia Surveys.

“Severely unaffordable markets are also more attractive to buyers seeking extraordinary returns on investment” and short term profits.

“This further raises prices in markets where urban fringe development is largely prohibited
by urban containment's land rationing policies,” the report’s authors say.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news