Last week I found myself attending a Trademe breakfast, nestled amongst a room full of like-minded recruiters and business professionals keen to hear from guest speaker and renowned economist, Bernard Hickey. The hot topic of the event was New Zealand’s housing crisis and it got me thinking: how on earth does the average Joe get on the property ladder in Auckland? Is it even possible?
Recent research compiled by the Real Estate Institute shows that the average Aucklander on a modest weekly income faces a solid 16 years of hard slog to save for a house deposit. These figures are based on a median Auckland house price of $670,000 with a 25% deposit along with an average weekly income, average weekly expenses and weekly tax payments required by a couple in NZ’s largest city.
Compare that to Canterbarians (4 years) and Wellingtonians (3 years), it’s easy to see why more and more workers are looking at opportunities outside of Auckland.
With Auckland’s infrastructure already struggling to cope and the building of affordable housing still a contentious issue with government, it seems that buying outside of Auckland is the only option for most.
"Much has been much made in the media of telling young people to stop eating smashed avocado on toast and to stop buying $5 coffees, the reality is that if they carry on they're going to be saving for 16 years."