Are New Zealand households really better off today than in 1994?

Summarised by Centrist

Did your parents have it easier? In 1994, a household earning $80,000 was considered well-off. 

Fast forward to 2024, and to match that same purchasing power, you’d need an income of over $200,000. While inflation has impacted wages, housing costs are what have really skyrocketed. 

In 1994, the median house price was $132,000. Today, it’s $753,000. 

As Gareth Kiernan from Infometrics points out, housing costs have surged much more than other expenses. Households today need significantly higher incomes to maintain the same standard of living. 

First-home buyers face enormous deposit requirements compared to 30 years ago. A 20% deposit on a $132,000 house in 1994 was a manageable $26,400, but today it’s a hefty $150,600.

Read more over at RNZ

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