Affordability issues felt in southern house prices

Double-digit growth in many southern average house values during the past year has driven home the housing unaffordability issue which is conspicuous in parts of Otago.

In separate reports yesterday, Quotable Value showed average house values in Dunedin and Queenstown Lakes had risen respectively 11.1% against a year ago, to $436,206 and 7.6% to $1.2million.

Massey University’s quarterly home affordability report showed Central Otago Lakes, which includes Queenstown, remained the least affordable place in the country – costing more than 14 times the annual wage for that area.

Lecturer David White, from Massey University’s School of Economics and Finance, said rising median prices were behind the affordability issue.

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Source: The Otago Daily Times