Houses getting less affordable
HIGH COST: Massey University's home affordability index is bad news for most.
Home ownership is slipping further out of reach for more first-time buyers, Massey University research shows.
The university's real estate analysis unit said in a quarterly report that the affordability of homes fell 11.4 per cent in the year to August, and it forecast further deterioration in the year ahead.
The survey measures the affordability of housing by comparing house prices and mortgage rates against the average wage.
The average weekly wage rose $28.06 over the year, the university found.
But that was not enough to offset an average $30,000 increase in median house prices and an increase in the average mortgage rate from 5.52 per cent to 5.86 per cent.
Read the full report here.