Auckland's housing affordability is looking good, according to a new report by Auckland Council's chief economist, which shows a 26 per cent improvement since mid-2015.
Auckland Mayor Phil Goff said the improved affordability shows the progress that is being made addressing Auckland’s housing issues.
"While there is no single solution to Auckland’s housing issues, the improved affordability shows we are moving in the right direction."
The Auckland Economic Quarterly, released today, shows that the Auckland housing market has benefited from regulatory and structural changes including the Auckland Unitary Plan and its zoning rule changes, a surge in industry capacity in New Zealand, and ongoing economic strength in Auckland with income growth and low unemployment, Auckland Council said in a statement.
Chief Economist David Norman said, "what causes house prices to rise is simple: not enough houses being built to meet demand for resident and in some cases non-resident demand. But investigate the detail and understanding why not enough houses are being built is more complex but much more pertinent.
"Against the backdrop of continued growth, Auckland has managed to achieve greater affordability in the past six years through a mix of policies and structural changes, and after comparing other cities, we know there are several differences that give us food for thought."
Latest growth and housing data shows Auckland’s housing supply is catching up with its shortfall.
Auckland Council estimates about 14,000 dwelling consents are needed each year to keep up with current growth. A record 14,634 dwellings were consented in the year to September 2019.
"Housing remains unaffordable for many Aucklanders and although we can’t change our geography, we are making progress on things we can influence," Mr Norman said. "As we continue to tackle this challenge, it’s going to take more of this holistic, open-minded view to get the job done."
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