Reserve Bank and Real Estate Institute data were used to measure affordability by taking median house prices and dividing those by gross annual median household income. This gave the house price-income median multiple measure.
The ideal income-to-loan ratio is around three times an annual salary. But in New Zealand it takes 5.3 times the average annual salary to pay for a house. In Tauranga it takes 6.5 times the average annual salary and in Auckland 6.4 times. In New York, it's 6.1.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10701626
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