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How affordable is your region?

08-Jul-2014

Southland, Taranaki, Manawatu/Wanganui, Nelson and Otago... if you’re after home affordability these are the best places to be based.

The latest findings of the Home Affordability Report, a quarterly survey released by Massey University, show that these regions are the only regions where house affordability has improved.

The affordability is based on the average wage and the average house prices.

National affordability deteriorated by 7.6 per cent over the 12 months ending May 2014. “There was no real surprise in this result because the average annual wage increase of $34.53 was not enough to offset a $38,000 increase in the national median house price and an increase in the average mortgage interest rate from 5.57 per cent to 5.64 per cent," the report said.

It is expected that affordability will continue to deteriorate as interest rate increases are incorporated into home loan debt servicing costs.