Housing Affordability in New Zealand: Evidence from Household Surveys

David Law () and Lisa Meehan ()
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Lisa Meehan: The Treasury, https://treasury.govt.nz

No 13/14, Treasury Working Paper Series from New Zealand Treasury

Abstract: Housing affordability has been a topic of much interest in New Zealand over recent years with the median house price increasing by over 50% between 2004 and 2008. The aim of this paper is to inform debate by drawing out evidence from two surveys: the Household Economic Survey (HES); and the Survey of Family, Income and Employment (SoFIE). In particular, the paper examines how patterns of house prices, expenditures, and home ownership have changed over time and across groups. A model which may be suggestive of whether or not an individual or couple is likely to find home-ownership affordable is also developed. This model incorporates information relating to four important influences of affordability: income; net wealth; house prices; and the structure of mortgage contracts (including the interest rate and mortgage term).

Keywords: Housing Affordability; House Prices; Homeownership; Housing Expenditures; Rent; Mortgage Payments (search for similar items in EconPapers)
JEL-codes: R21 R31 R32 (search for similar items in EconPapers)
Pages: 30
Date: 2013-07
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:nzt:nztwps:13/14

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