Home truths: Buying a home in New Zealand

According to the 5th Annual Demographia International Housing Affordability Survey, buying a home in New Zealand is prohibitively expensive due largely to planners. The reality, however, is far more complex.

In this instance, coming second to Australia is not so bad. The Aussies are the undisputed world champions in unaffordable housing - a home in the lucky country costs 6.3 times the average annual household income.

But New Zealand is not far behind. Buying a house in Godzone is prohibitively expensive too - 5.7 times average household earnings. Crikey. That's almost double the rule of thumb for affordable homes - that they should cost no more than three times annual household income. In Canada the "median multiple" is just 3.5. And in the United States, it's 3.2. How the hell did things get so out of whack Downunder?

According to the 5th Annual Demographia International Housing Affordability Survey, the root of the problem is planners - specifically the way their zoning rules and regulations constrain the supply of land.

To read the full NZ Herald story click here

Posted: 2 Feb 2009

News articles