Jan 21, 2008

NZ Houses World's Least Affordable??

Another negative story on the front page of the New Zealand Herald. Not what the PM will have wanted to read with her Weet-bix. Apparently NZ house hunters face the biggest gap between earnings and house prices. Wages are so low and house prices are so high that it takes 18 years and six months of a household's entire annual income to pay for a home, Demographia found. That measure is based on median house prices compared to median wages.

The Hive thinks that this survey result is an indictment of policy in recent years. We need tax cuts and more restraint in Government spending so that productivity can rise. Higher productivity = the prospect of higher wages.