{
  "id": 1781335,
  "title": "Housing affordability returns to average following pandemic price spike",
  "url": "https://urgent.news/2026/08/18/housing-affordability-returns-to-average-following-pandemic-price",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-18T19:23:42.000Z",
  "source": {
    "name": "RNZ Business",
    "slug": "rnz-business",
    "url": "https://www.rnz.co.nz/news/personal-finance/1056086/housing-affordability-returns-to-average-following-pandemic-price-spike"
  },
  "original_language": "en",
  "account": "Housing affordability has returned to its long-term average following a sharp increase in prices during the Covid-19 pandemic, according to new data from Cotality. In the second quarter of this year, the national value-to-income ratio fell to 6.7, matching the long-term average between 2004 and 2026. In 2021, house values were nearly 9.8 times income. Several years of lower property prices, easing mortgage rates, and rising household incomes contributed to the improvement in affordability, according to Cotality NZ chief property economist Kelvin Davidson. Mortgage repayments for new loans also dropped to 40 percent of gross household income, below the long-term average of 42 percent and significantly lower than the 54 percent peak in late 2021. The time required to save a 20 percent deposit has also decreased to 8.9 years, slightly below the long-term average of nine years. Median rents now consume 25.5 percent of household income nationally, closely aligned with the long-term average and indicative of the most favorable conditions for tenants in nearly a decade. However, it's crucial to note that some renters may still face challenges despite these improvements, as Cotality points out that not all tenants earn average incomes. Affordability gains varied across the country, with Auckland, Tauranga, and Wellington showing the most significant turnaround. The income ratio in Auckland fell to 7.2 percent, while Wellington had the lowest among major cities at 5.5 percent. While these markets may not necessarily be inexpensive, they are more affordable than they have been for many years. Cotality also revealed that in the second quarter, 13.1 percent of properties sold for less than what the seller paid, with the highest rate since 2012. In Auckland, 20.9 percent of properties sold for a loss, and in Wellington, it was 18.4 percent. Apartments experienced the weakest resale performance, with 45.4 percent sold for a loss – the weakest since 2010.",
  "summary": "Affordability no longer the significant barrier it has been, Cotality NZ chief property economist Kelvin Davidson says.",
  "key_points": [
    "Housing affordability returns to long-term average in Q2 2023",
    "Value-to-income ratio falls to 6.7, matching 2004-2026 average",
    "Mortgage repayments drop to 40% of income, below long-term average"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}