NZ House Price-to-Income Ratio by Region
How many years of median household income buys the median-priced home? Tracking 10 NZ regions from 2013 to 2025, using REINZ house price data and Stats NZ Census income data. Spoiler: no region is "affordable" by international standards.
Price-to-income ratio by region
| Region | 2013 | 2018 | 2021 | 2023 | 2025 | 2025 Status |
|---|---|---|---|---|---|---|
| Auckland | 7.3× | 10.0× | 12.8× | 10.7× | 10.5× | Impossibly unaffordable |
| Wellington | 5.2× | 7.0× | 9.8× | 8.0× | 7.9× | Severely unaffordable |
| Canterbury | 5.9× | 6.5× | 8.3× | 8.2× | 8.0× | Severely unaffordable |
| Waikato | 5.3× | 7.6× | 10.0× | 9.1× | 8.8× | Impossibly unaffordable |
| Bay of Plenty | 6.1× | 8.8× | 11.6× | 10.3× | 9.9× | Impossibly unaffordable |
| Otago | 4.7× | 6.5× | 9.3× | 8.4× | 8.3× | Impossibly unaffordable |
| Nelson/Tasman | 6.1× | 8.1× | 10.4× | 9.5× | 9.1× | Impossibly unaffordable |
| Hawke's Bay | 5.3× | 7.2× | 9.7× | 8.8× | 8.4× | Impossibly unaffordable |
| Manawatu-Whanganui | 4.3× | 5.7× | 8.0× | 7.3× | 7.1× | Severely unaffordable |
| Northland | 6.0× | 8.1× | 10.5× | 9.1× | 8.9× | Impossibly unaffordable |
Ratio = median house price / median household income. 3× = affordable, 3-5× = moderately unaffordable, 5-8× = severely unaffordable, 8×+ = impossibly unaffordable (Demographia methodology).
Median house prices (nominal NZD)
| Region | 2013 | 2018 | 2021 | 2023 | 2025 |
|---|---|---|---|---|---|
| Auckland | $555,000 | $850,000 | $1,180,000 | $1,050,000 | $1,080,000 |
| Wellington | $395,000 | $600,000 | $920,000 | $790,000 | $820,000 |
| Canterbury | $375,000 | $465,000 | $640,000 | $680,000 | $710,000 |
| Waikato | $330,000 | $530,000 | $760,000 | $740,000 | $760,000 |
| Bay of Plenty | $355,000 | $560,000 | $810,000 | $780,000 | $800,000 |
| Otago | $275,000 | $430,000 | $670,000 | $650,000 | $680,000 |
| Nelson/Tasman | $345,000 | $520,000 | $730,000 | $710,000 | $730,000 |
| Hawke's Bay | $290,000 | $440,000 | $650,000 | $630,000 | $650,000 |
| Manawatu-Whanganui | $230,000 | $340,000 | $530,000 | $520,000 | $540,000 |
| Northland | $310,000 | $470,000 | $670,000 | $630,000 | $650,000 |
Median household income (nominal NZD)
| Region | 2013 | 2018 | 2021 | 2023 | 2025 |
|---|---|---|---|---|---|
| Auckland | $76,000 | $85,000 | $92,000 | $98,000 | $103,000 |
| Wellington | $76,000 | $86,000 | $94,000 | $99,000 | $104,000 |
| Canterbury | $64,000 | $71,000 | $77,000 | $83,000 | $89,000 |
| Waikato | $62,000 | $70,000 | $76,000 | $81,000 | $86,000 |
| Bay of Plenty | $58,000 | $64,000 | $70,000 | $76,000 | $81,000 |
| Otago | $59,000 | $66,000 | $72,000 | $77,000 | $82,000 |
| Nelson/Tasman | $57,000 | $64,000 | $70,000 | $75,000 | $80,000 |
| Hawke's Bay | $55,000 | $61,000 | $67,000 | $72,000 | $77,000 |
| Manawatu-Whanganui | $54,000 | $60,000 | $66,000 | $71,000 | $76,000 |
| Northland | $52,000 | $58,000 | $64,000 | $69,000 | $73,000 |
Key observations
- 2021 was the peak of unaffordability. Post-COVID price surge sent Auckland to 12.8× and Wellington to 11.8×. Every region hit its worst ratio in 2021.
- Small improvement, not a fix. 2023-2025 price corrections (-10 to -15% from peak) and income growth (+10%) improved ratios by 1-2 points, but all regions are still severely unaffordable.
- No region below 7×. Even Manawatu-Whanganui — the cheapest by ratio — is at 7.1×, more than double the 'affordable' benchmark.
- Income growth can't keep up. Median incomes grew ~35-50% from 2013-2025, but house prices grew 80-120% over the same period in most regions.
- Interest rates matter too. Price-to-income ignores mortgage rates. A 7× ratio at 3% interest is more affordable (monthly) than a 5× ratio at 8% interest. This analysis is about the purchase price barrier, not ongoing affordability.
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Frequently asked questions
What is the price-to-income ratio?
The price-to-income ratio is the median house price divided by the median household income. A ratio of 8.0 means it takes 8 years of the median household's entire pre-tax income to buy the median-priced home — before any living costs. International benchmarks: 3× = affordable, 5× = moderately unaffordable, 8×+ = severely unaffordable.
Which NZ region is the most affordable?
Manawatu-Whanganui consistently has the lowest price-to-income ratios (around 7× in 2025). However, this is still above the international 'affordable' threshold of 3×. No major NZ city priced below 5× income in 2025.
How does Auckland compare to other regions?
Auckland is the most expensive by absolute price (~$1.08M median in 2025), but its ratio (10.5×) is only slightly above Northland (8.9×) and Bay of Plenty (9.9×). Auckland also has the highest median household income, partly offsetting the higher prices.
Has affordability improved since 2021?
Yes, slightly. The 2021 peak saw ratios of 10-13× in most regions. Prices fell ~10-15% from peak in Auckland, Wellington, and Bay of Plenty, while incomes grew ~10%. Ratios in 2025 are 1-2 points lower than 2021 across most regions.
How does NZ compare internationally?
NZ cities rank among the most unaffordable globally per the Demographia International Housing Affordability survey. Auckland and Wellington regularly score 'severely unaffordable' (8×+). Australian cities (Sydney, Melbourne) are similarly unaffordable; US cities average ~4-5×.
Where does the data come from?
Median house prices: REINZ Monthly Property Report (June quarter each year). Median household income: Stats NZ Census (2013, 2018, 2023) with inter-census interpolation. 2025 estimates based on REINZ Q1 2026 data and Stats NZ labour market releases.