Houses in NZ least affordable in world

A new study has found NZ now has the least affordable houses in the world, with the largest gap between earnings and house prices.

Comparing median house prices to median wages, in NZ it takes 18 years and six months to pay for a home.

The low ranking is due to three factors.  After tax real wages have increased very slowly in the last few years. House prices have increased a lot, and mortgage rates are the developed world’s highest (off memory).