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

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news