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Auckland economic quarterly, February 2017

Author:  
David Norman, Harshal Chitale, Ross Wilson
Source:  
Auckland Council Chief Economist Unit
Publication date:  
2017
Topics:  
Economy

Extract:

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%. ...

February 2017



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