Homeowners spend less on housing costs per year
Rent prices have increased and mortgage interest payments and property rates dropped in 2019 compared to 2018, according to Stats NZ – meaning that average, housing costs have remained the same.
The average household spent approximately $17,227 per year on housing costs in the year ended June 2019, up by a relatively small 0.6% on the year prior. Property and ground rents were up by 10.5% from $110.80 to $122.50, and mortgage interest rates dropped by 9.6% from $88.50 to $80.00.
The consumers price index for the June 2019 year also showed that almost a third of households spent at least 30% or more of their income on housing costs. 28% of renters spent 40% or more of their income on rent and other housing costs in the same year, as opposed to 12.6% of homeowners or partial owners.
“While rents increased, and mortgage interest payments and property rates decreased, overall housing costs remained unchanged,” income and poverty statistics manager Chris Pooch said.
Stats NZ’s surveys have shown that for the year ended June 2019, the average annual disposable income for New Zealand households was $81,934, while the annual average equivalised disposable income was $45,744.
Disposable income measures the resources households and individuals have available to improve their economic situations, while equivalised disposable income compares across households of different sizes and demographics.
Stats NZ conducts its household economic survey (HES) annually to collect information on income, savings and expenditure, and compare demographic information on individuals and households.
The 2019 HES surveyed over 20,000 households, and is expected to publish more data in February and March.
