This week two different reports made plain the escalating cost of housing in Wellington (of course – as always – focussed on home ownership).
The average annual weekly wage increase of $28.06 was not enough to offset a $30,000 increase in the national median house price and an increase in the average mortgage interest rate from 5.52% to 5.86%,” the survey found.
In Wellington, this meant that housing affordability dropped by 7.7% for owner-occupiers.
The second demonstrated that while “first time buyers” are finding it harder, property investors are buying up more and more properties:
[A]ctivity among investors who owned two or more properties had hit a 10-year high. Big investors with more than 10 properties were the most active, buying about two out of every five homes in August.
Of course, this all puts more financial pressure on renters, with forecasts suggesting that rents in Wellington will rise even faster than the cost for owner-occupiers.
For those who can afford to buy, they are having to do so further and further away from the city:
The figures also suggested people were looking further afield for a first home, such as in northern Wellington suburb Tawa and in Hutt Valley, while multiple property owners were buying in Karori and other central-city suburbs, including Mt Victoria and Oriental Bay.
How long will it be before only the rich can afford to live in our city? How can we fight to make renting affordable and secure for people of all incomes?
Photo credit: Jason Jones via Flickr.