Renting is best option for many
About a third of the country were renters at the 2013 census.
Close to two-thirds of Auckland renters would have less than $220 left over each week if they were to buy a house, government research shows.
The figures, from the controversial Housing Affordability Measure (HAM), suggest renting is much more affordable for many people.
Just over 11 per cent of renters across the country have less than $220 a week left over after paying rent.
But 59 per cent of Auckland renters would have less than that after paying mortgage costs for a starter home in the area.
The $220 figure is based on an individual living alone, but is used to calculate the higher benchmarks for families and couples - $339 for a couple with no children and $406 for a couple with one child.
While the number of households in this predicament has levelled off in the last year it made a dramatic climb from 45 per cent in 2012, showing a marked increase in housing unaffordability.
The same data through another lens shows that over two-thirds (68 per cent) of Auckland renters would have to spend over 30 per cent of their income on housing costs if they were to buy a house.
This figure has again climbed dramatically since a dip to under half of renters in 2012 - when Building and Construction Minister Nick Smith became Housing Minister.
This is the second release of HAM, and brings the numbers up to March 2016.
About a third of the country were renters at the 2013 census.
Almost half (44 per cent) of them nationwide would have less than the $220 a week benchmark after paying for mortgage costs on a starter home in their area.
HAM is built by the Ministry of Business Innovation and Employment (MBIE) and looks at how much income potential first home buyers would have left over after paying off a mortgage in a lower quartile ‘‘starter home’’ in their area.
It also looks at income after paying the average rent in an area.
HAM’S original release was repeatedly delayed, and documents released under the official information act revealed officials were worried about ‘‘a lack of ministerial agreement’’ with the measure.
The main benchmark HAM uses is not $220, but instead about $690.
This income left over after housing costs is based on the average amount left over for all New Zealanders, while the $220 figure is for the 10th percentile of residual income.
That $690 figure is far higher, but the trend is smoother.
Fully 77 per cent of renters nationwide would have less than $690 left after paying for a mortgage in their area - a drop since a high just after the GFC in 2008.
As expected, the numbers for Auckland are worse, with 82 per cent of renters having less than $690 left if paying mortgage costs.
This remained roughly unchanged from 2015 but before then had been climbing steadily.
Affordability in both Wellington and Christchurch was gradually increasing for renters and buyers.
In general, the figures showed a flattening off of unaffordability after 2015.
‘‘It’s simply impossible for a large number of people who simply want a fair crack at owning a home of their own,’’ Labour MP Phil Twyford said.
‘‘Housing is the major driver of inequality and poverty in New Zealand today.
‘‘This measure shows that after nine years National haven’t managed to put a dent in the housing crisis.’’
Building and Construction Minister Nick Smith said more houses had been built in his tenure; going from 13,000 per year to over 30,000 per year.
‘‘It’s quite a complicated measure and we need to reflect that it is for March 2016 - nearly 18 months ago - and the housing market has changed quite dramatically since.’’
He said affordability was better than it was when National became Government in 2008, but acknowledged that there had been serious house price inflation between 2011 and 2015.