New report finds NZ less affordable than 32 other countries, including Australia
New Zealand has ranked the sixth least affordable country to buy a house, according to the 2022 Global Cost of Property report.
The report, released by Compare the Market, measures affordability ratio as the cost per square metre as a percentage of income, based on an average property price per square metre of US$4,461 (NZ$6,602), and an average post-tax household income of US$25,074 (NZ$37,110).
The report showed that NZ housing, with an affordability ratio of 17.8%, was less affordable than 32 other countries, including the UK, Australia, and Canada, Newshub reported.
The UK was eighth least affordable, according to the list. Australia, ranked as 11th least affordable.
Hannah Norton, Compare the Market spokesperson, told Newshub that Australians, with an affordability ratio of 16.2%, are in a slightly better position than Kiwis.
Australia moved from 24th position in 2020, to 28th in the 2022 report, bringing the country to just one spot outside the 10 least affordable countries.
“Despite this, Australia’s disposable income remains one of the highest worldwide, which keeps affordability higher than other countries listed in the study,” Norton said. “The least affordable country to buy a house is South Korea, which has an affordability ratio of 59.4%.”
Meanwhile, the report found Turkey as the most affordable of all the countries, with an affordability ratio of 4%.
The combination of rising property prices, living costs, property shortages, and stagnant wages have made it difficult to buy a house, not just in New Zealand but in other nations as well.
“New Zealand’s ranking has stayed consistent in comparison to other nations, which indicates that the tough market buyers are facing is not unique to Aotearoa,” Norton told Newshub.