The Ministry of Business Innovation and Employment released data tracking the number of first home buyers and renters with below average income, comparing March 2016 through to March 2017. It serves as a measure of affordability across the country.
The figures show first home buyer households "with below average income after housing costs" rose from 77% in March 2016, to 80% in March 2017. The figures indicate a growing number of New Zealanders are struggling with their finances after paying mortgage costs.
New Zealand's renters remained in the same financial position, according to the data. The percentage of renter households with "below average incomes after housing costs" remained unchanged at 61% between March 2016 and March 2017, MBIE said.
The data reveals a growing number of first home buyers with below average income after housing costs across New Zealand’s major cities. In Auckland, the figure rose from 83% to 84%. In Christchurch the figure rose from 72% to 74%. While in Wellington, the percentage increased from 58% to 63%.
The numbers suggest Kiwis are stretching their available finances to get onto the property ladder. First time buyers have begun to take a greater percentage of the country's housing market in recent months, amid ongoing restrictions on property investors.
Recent data from the Reserve Bank revealed first home buyers took a 16% share of New Zealand’s home loans in April, their highest share in a decade. Banks including Westpac and ASB say more first time buyers than ever are turning to KiwiSaver to fund a deposit.
