Author:David Norman, Auckland Council Chief Economist
Source:Auckland Council Chief Economist
- House prices rise when not enough houses are available to meet resident and non-resident demand, and when low interest rates and income growth allow people to bid up prices.
- Recent price declines in Australia have led some to suggest Auckland will follow. But Australia has over-built relative to its population growth over the last decade, as it over-developed for a foreign investor market that is now weaker.
- Auckland has not, which has implications for the relative outlook for the region’s largest cities.
- With Auckland’s economic outlook, prices will likely remain flattish, with limited macro-prudential risk, and slow gains in affordability.
Insights. Topical commentary on the Auckland economy