New Zealand’s house prices are among the most unaffordable in the world, a new survey shows.
The Demographia International Housing Affordability Survey rates housing affordability using the “median multiple”, a measure of median house price divided by median household income.
Authors Wendell Cox and Hugh Pavletich ranks as affordable cities where the median price is up to three times the median wage. Areas are classed as moderately unaffordable when the ratio is up to four, seriously unaffordable between four and five and severely unaffordable when the ratio is more than five times income.
The United States was home to all the affordable housing markets in the survey – with nine including Pittsburgh and Rochester, which had ratios of 2.6.
Hong Kong had the most unaffordable houses, with prices 20.9 times income.
Auckland, at nine times income, was severely unaffordable, and up from 5.9 in 2004.
The country as a whole also ranks in this range, with a ratio of 6.5.
Auckland is the seventh-least affordable city of the 91 major housing markets surveyed.