Auckland’s af­ford­abil­ity slides

Central Leader - - FRONT PAGE - MICHAEL DALY AND TAO LIN

‘‘An Auckland me­dian-priced house is now $830,8100.’’

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 con- sents’’.

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.

The re­sults of the De­mographia sur­vey were con­sis­tent with ANZ’s re­search, which showed about nine times the av­er­age in­come was needed to buy a house in Auckland.

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