Singles in New Zealand are not living the ‘Carrie Bradshaw’ life, with new analysis showing that no region in New Zealand meets the affordability threshold for single renters.
Ray White Group Senior Data Analyst, Atom Go Tian, has replicated The Economist’s ‘Carrie Bradshaw Index’ for New Zealand, comparing median weekly incomes to rental costs across the country.
“Not a single region in New Zealand meets the affordability threshold for single renters,” Mr Go Tian said.
“The West Coast Region comes closest to affordability, with a weekly income gap of just $117 between the median income ($1,050) and what’s needed for affordable rent ($1,167).”
He said the Bay of Plenty and Northland regions show the most severe affordability challenges.
“In the Bay of Plenty, despite a median weekly income of $960, a single person would need to earn $1,790 to rent affordably – creating a substantial gap of $830,” he said.
“Auckland requires the highest weekly income for affordable renting at $2,061, while the median single-person income is only $1,343 – creating a significant $718 gap.”
The analysis revealed some surprising findings at a suburb level, with Karekare in Auckland emerging as the most affordable option.
“Karekare in Auckland emerges as the most affordable suburb for single renters, with rent consuming just 19.36 per cent of the median income,” Mr Go Tian said.
“This is followed by Wellington’s Seaview at 26.24 per cent and Auckland’s Helensville at 28.29 per cent.”
He said Westmere in Auckland stands out as the least affordable suburb.
“In Westmere, rent takes up 79.12 per cent of median income, followed by Auckland’s Morningside at 71.71 per cent and Tauranga’s Bethlehem at 67.71 per cent,” he said.
“Unlike Carrie Bradshaw’s New York lifestyle, New Zealand’s major cities don’t have the same density of apartment living options, and when they do exist in desirable areas, they command rents that far exceed what’s affordable on a typical single income.”
The news is also bad for first-home buyers who want to get into the market.
CoreLogic Chief Property Economist, Kelvin Davidson said first home buyers are finding innovative ways to enter the market despite ongoing challenges.
“It’s never easy to get that first home and stretched housing affordability – despite falling mortgage rates – remains a key challenge,” Mr Davidson said.
“But many first home buyers are still proving successful, taking advantage of low-deposit lending speed limits, tapping their KiwiSaver for part of a deposit, as well as showing a willingness to compromise on location and property type.”
Mr Davidson said first home buyers are securing better deals in the current market.
“The median price paid by first home buyers has fallen in recent years, from $715,000 in 2022, to $695,000 last year, and $685,000 across the first nine months of 2024,” he said.
“That’s despite standalone houses, usually larger and pricier properties, making up a higher share of first home buyer purchases this year.”
According to Mr Davidson, the strongest market share for first home buyers over the first nine months of 2024 has been in Wellington, at just under 35 per cent of purchases.
“Tauranga is at the other end of the spectrum, at 23 per cent,” he said.
