Housing Affordability Measure
Using household-level data from the Statistics New Zealand Integrated Data Infrastructure (IDI), The Housing Affordability Measure is a new approach to measuring housing affordability. First released on 10 May 2017 this measure provides a picture of shifts in affordability, broken down by region and territorial authority (and by ward in Auckland).
In August 2012, as part of a review of the Official Statistics System, Cabinet agreed that work should be undertaken towards the creation of a Tier 1 official statistic on housing affordability. The Housing Affordability Measure (HAM) is an experimental statistical series that measures household income after paying for housing costs for two subsets of the population: potential first home buyers population and renters.
Affordability is calculated by using data from Statistics New Zealand’s Integrated Data Infrastructure to measure income at the household level. Housing costs – the rent lodged on tenancy bond forms for renters and mortgage payments, rates and insurance for potential first home buyers – are then subtracted. The remaining household income is then adjusted to reflect the fact that larger households generally need larger incomes.
As the lead government agency on housing policy, the Ministry of Business, Innovation and Employment (MBIE) assumed the responsibility for developing these two indicators. The HAM’s first set of results, up to June 2015, presents key findings about housing affordability trends at a national level and for the three most populous regions of New Zealand.
Files for download:
- HAM v1.0 Results paper [PDF 889KB] - The key findings from the initial publication of the Housing Affordability Measure
- HAM v1.0 Methodology [PDF 1.4MB] - The technical details behind how HAM was constructed.
- Table 1 – HAM by Region [CSV 22KB] - Ham Buy and HAM Rent by Regional Authority
- Table 2 – HAM by TA and selected Wards [CSV 95KB] - HAM Buy and HAM Rent by City and District Council. Also provides Ward-level information for Auckland.
- Supplementary Table A – HAM by TA and Selected Wards (trended) [CSV 144KB] - HAM Buy and HAM Rent, but smoothed out so as to make it easier to see the trends over time.
- Supplementary Table B – Alternate HAM thresholds [CSV 445KB] - Alternate versions of HAM that use the 30th or 10th percentile of affordability, instead of the median as a benchmark.
- Press release from the initial publication
- Questions and answers
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