City ranks amongst worst
Auckland is the fourth least affordable housing market among 92 major cities in nine countries in the latest Demographia survey.
According to the survey, published on Monday, 10 times the median household income in Auckland is needed to buy a median-priced house, which cost $830,8100.
Among major markets, Auckland trails only Hong Kong, Sydney and Vancouver.
Prime Minister Bill English told RNZ that an answer to the increasing cost of housing was already happening in the form of changes to the Resource Management Act to make processes faster.
Auckland Council was ‘‘already starting to do what it’s really starting to do quite well’’, which was ‘‘executing the processes fast, the building consents, the subdivisions consents’’.
The government was also ‘‘cranking up its own building programme,’’ English said.
ANZ senior economist Phil Borkin said the reason house prices are how they are was due to a huge range of factors, including strong demand from migration and housing supply being slow to pick up.
Therefore it was going to take more than a law change or any single thing to change the prices, he said.
A change in house prices would also take ‘‘numerous years’’ to take effect.