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Working paper

Affordability of Housing: Concepts, Measurement and Evidence (WP 06/03)

Issue date: 
Wednesday, 1 March 2006
View point: 
Publication category: 
JEL classification: 
R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics: Household Analysis: General

Formats and related files

This paper discusses the concept of affordability as it applies to housing, examines the approaches used to measure affordability, and then documents the aggregate evidence for New Zealand over the last twenty years.


Tony Booth, Matthew Bell, Arthur Grimes and Gareth Kiernan were very helpful with the provision and analysis of data. The authors are also indebted to colleagues at the Treasury for their assistance, in particular to Hauraki Greenland and Roger Hurnard who provided useful suggestions, and to Graham Parkin of Housing New Zealand who provided a constructive review.


The views, opinions, findings, and conclusions or recommendations expressed in this Working Paper are strictly those of the author(s). They do not necessarily reflect the views of the New Zealand Treasury. The Treasury takes no responsibility for any errors or omissions in, or for the correctness of, the information contained in these working papers. The paper is presented not as policy, but with a view to inform and stimulate wider debate.

Last updated: 
Tuesday, 23 October 2007