Auckland economic quarterly, February 2017
Author:David Norman, Harshal Chitale, Ross Wilson
Source:Auckland Council Chief Economist Unit
The Serviceability Affordability Model
Measuring housing affordability
- Traditional measures of housing affordability focus only on incomes, and some consider interest rates.
- These measures often exclude the challenge of accumulating the deposit.
- Our Serviceability Affordability Model (SAM) incorporates all three factors in evaluating changes in affordability across time.
- SAM shows that housing in Auckland was 9.2% less affordable in December 2016 than it was 10 years earlier, even as house prices rose 99%. ...