Publication Type

Journal Article

Version

publishedVersion

Publication Date

1-2021

Abstract

The decade following the global financial crisis (GFC) has witnessed rampant house price appreciation in many cities of the developed world. The metropolitan centres of New Zealand showcase this phenomenon with house price appreciation persistently outpacing income growth. In Auckland, the ratio of prevailing median house prices to median household income rose from 6.4 in 2010 to 10.0 in 2016 (Demographia, Citation2011, Citation2017), before declining to 8.6 by 2019 as house prices flat-lined while household incomes increased (Demographia, Citation2020). However, a strong resurgence in house prices during 2020 means that this ratio has resumed its upward trajectory, with an increase of approximately 16% set against an increase in average household income of only 4.4% for the year through to June 2019 (Statistics New Zealand, Citation2020). Increases over the last decade of a similar or even larger magnitude have occurred in the cities of Tauranga, Hamilton, Napier, Wellington and Dunedin. A study by the authors (Greenaway-McGrevy & Phillips, Citation2016) analysed data for the main metropolitan centres over 2005–2016, finding strong evidence of repeated episodes of house price exuberance coupled with clear indications of spill-over effects among New Zealand cities.

Keywords

Housing prices, Nex Zealand, property markets, government policy

Discipline

Econometrics | Real Estate

Research Areas

Econometrics

Publication

New Zealand Economic Papers

Volume

55

Issue

1

First Page

1

Last Page

6

ISSN

0077-9954

Identifier

10.1080/00779954.2021.1878328

Publisher

Taylor & Francis (Routledge): SSH Titles

Copyright Owner and License

Publisher

Additional URL

https://doi.org/10.1080/00779954.2021.1878328

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