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Auckland housing 'severely unaffordable'

NZ Newswire logoNZ Newswire 22/01/2017

Auckland has retained its place as the fourth least affordable housing market among 92 major cities around the world, a new survey has found.

Only Hong Kong, Sydney and Vancouver were more unaffordable, according to the Demographia International Housing Affordability Survey.

Auckland's median house prices soared to $830,800 or 10 times the median $83,000 income of its residents in what the survey's authors called "severely unaffordable".

When the ratio is three or less, markets are considered affordable.

Auckland also ranked as the equal fourth least affordable city in the 2016 survey with house prices at $748,700 being 9.7 times more expensive than median incomes at $77,500.

Similarly, New Zealand's overall housing market with prices 5.9 times more expensive than incomes ranked only behind Hong Kong for its unaffordability with Australia's market being marginally more affordable.

This was up from 2016, when house prices across New Zealand were 5.2 times more expensive than incomes.

When smaller housing markets are included in the list Tauranga ranks as the seventh least affordable market with a median-priced house at $591,900 or 9.7 times the median income of $61,200.

The survey ranked 406 housing markets in nine countries.

The countries included Australia, Canada, China, Ireland, Japan, New Zealand, Singapore, the United Kingdom and the United States.

LEAST AFFORDABLE MAJOR MARKETS:

* Hong Kong 18.1 (the ratio of median house prices versus median incomes)

* Sydney, 12.2

* Vancouver, 11.8

* Auckland, 10

* San Jose, 9.6

* Melbourne, 9.5

* Honolulu, 9.4

* Los Angeles, 9.3

* San Francisco, 9.2

* Bournemouth & Dorsett, 8.9

LEAST AFFORDABLE NEW ZEALAND MARKETS:

Auckland, 10

Tauranga-Western Bay of Plenty, 9.7

Hamilton-Waikato, 6.2

Christchurch, 5.9

Wellington, 5.8

Napier-Hastings, 5.7

Dunedin, 5.4

Palmerston North-Manawatu, 4.7

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