Changes in Housing Affordability Indices

Renting a home

The change in rental affordability indicator compares changes in rental prices for new tenancies with the growth in median household disposable (after tax) income. Factors that can affect rental affordability are:

• Rental prices

• Household disposable income

Saving for a deposit

The change in deposit affordability indicator compares changes in house sales prices with the growth in median household disposable (after tax) income. Factors that can affect deposit affordability are:

• House sales prices

• Household disposable income

Servicing a mortgage

The change in mortgage serviceability indicator compares changes in the purchasing power of mortgage interest payments for new home loans with the growth in median household disposable (after tax) income.

Factors that can affect mortgage serviceability are:

• Mortgage interest rates House sales prices

• Household disposable income.

Individual experience of affordability will vary, for example if household income doesn’t change in line with the national median.

A list of caveats and descriptions can be found on the CHAI dashboard here:

https://www.hud.govt.nz/stats-and-insights/change-in-housing-affordability-indicators/about-the-indicators/