Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Household Income Up Over 40% in Last 10 Years

Household income up more than 40 percent in last 10 years


Average annual household income has risen more than 40 percent since 2007, increasing at twice the rate of inflation, Stats NZ said today. Over the same period, average annual housing costs increased just over 50 percent.

Since 2007, average annual household income is up nearly $30,000 (42.0 percent), to reach $98,621 (before tax) in 2017. Over the same 10 years, average annual housing costs increased from $10,658 to $16,037 (up 50.5 percent), according to the latest household income and housing-cost statistics. Inflation, as measured by the consumers price index, increased 20.2 percent.

Household income includes any income from wages and salaries, self-employment, investments, government benefits, and superannuation. Housing costs include rent and mortgages, property rates, and building-related insurance.

“Despite increases in both household income and housing costs, the ratio of housing costs to household income has not changed significantly from a decade ago,” labour and income statistics manager Sean Broughton said.

For the year ended June 2017, households spent an average of $16.40 of every $100 of their household income on housing costs, slightly more than the $15.40 they spent a decade ago.

Lower interest rates help keep housing costs down

In the year ended June 2017, average weekly housing costs were $318.50, almost unchanged from 2016. Lower mortgage interest rates helped to largely dampen any increases in housing costs.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

"Housing costs have been held in check by lower mortgage interest rates, which affected both floating and two-year fixed mortgages," Mr Broughton said.

Average mortgage interest payments were significantly lower for the June 2017 year (down 11.6 percent to $250.80 a week), falling from $283.70 a week for the year ended June 2016.

Renters were almost three times as likely as home owners to spend 40 percent or more of their household income on housing costs. For the June 2017 year, about one in five (20.8 percent) renting households spent 40 percent or more of their household income on rent and other housing costs. In contrast, fewer than one in ten (7.8 percent) of people who owned, or partly owned, their own home spent 40 percent or more of their household income on housing costs.


ENDS


© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.