Infometrics: House prices must drop more to be affordable – RNZ 2 July 2024

Summarised by Centrist

House prices need to fall an additional 16% to achieve affordability, according to Infometrics chief forecaster Gareth Kiernan. This statement follows Housing Minister Chris Bishop’s call for a reduction in house prices. Despite prices being 15.9% below their 2021 peak, the average house remains 10.7 times personal income. Experts highlight the political sensitivity of this issue and suggest that a balanced approach, combining gradual price adjustments with income growth, and easing zoning restrictions, is essential for sustainable affordability without destabilising the economy.

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