Auckland Housing Market a Concern

Finance Minister Bill English has identified high house prices in Auckland as a potential growth impediment for New Zealand going into 2016. Commenting at a social housing conference in Wellington in October, Mr. English pointed out that median prices in the city now equate to around nine times the average income, and explained that the current situation is unsustainable. Data showed that building consents were up 13% (y-o-y) in September, with Auckland coming in closely behind Waikato as the region which saw the biggest increase in approvals. However, with around half of immigrants moving to the nation’s most populous city, many analysts doubt that current building levels are sufficient to satisfy rising demand.

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