Topic: Housing

Auckland rated severely unaffordable in international housing survey

updated By Te Kāea
  • Auckland
Auckland housing severely unaffordable according to annual survey

"Auckland has been rated severely unaffordable in all 11 surveys."

According to the 2015 Annual Demographia International Housing Affordability Survey, Auckland is the ninth least affordable metropolitan city in the world.

Sydney, home to a large population of Māori residents, rated as the third least affordable major city in the world, and Hong Kong takes the number one spot as the most unaffordable city in the world.

It's the harsh reality of Auckland's housing situation.

Real estate agent Arthur Sburitzky says, “A house that was $300,000 a year ago is probably towards the 4 or $420,000 mark a year later, with no capital gains tax and big huge profits like that it draws in a lot of people especially off shore.”

In an interview with Te Kāea in October 2014, Labour MP Louisa Wall said, “People in Manurewa, South Auckland for example.  The reality of living in a tent is something more people are experiencing, people living in cars, and it is because we don’t have adequate housing stock.”

The survey found that the median price of a home in Auckland is $613,000, where the average median household income is $75,100.

Tiriki-Teihana Webster and her whānau recently moved from Melbourne.  She assumed New Zealand would be an easier place to purchase a house.

Webster says, “Back in Melbourne the banks were great, they actually helped me get a loan and purchase my home, and they were very helpful. When I came back in December 2012 I went into the bank and they actually made it really difficult for me.”

“I pay rent and it cost less than the mortgage I’m asking for, so how do I actually get a home. They've left me no choice but to rent. I'm looking to own a home of my own, and it’s a bit difficult at the moment because I’m going through homes for sale, and Auckland is definitely out of the question for me, I can't afford it.”

For the rest of New Zealand, the survey also found that there were no moderately affordable or affordable markets in New Zealand, with regions like Tauranga-Western Bay of Plenty, Christchurch and Wellington being seen as, "severely unaffordable".

The full survey report can be found here.