House price to rent ratio is the measurement of the profitability of owning a house. House price to income ratio is the measurement of the affordability of owning a house.
Here we have listed a few major cities in the world with known high house price, comparing the affordability and profitability to see where the Auckland housing price is among them.
House price to income ratio 2017
In above chart, the higher ratio means lower affordability.
Most of the Asian cities have very high house price to yearly, median household income ratio. Hong Kong (36.15), Beijing(33.75) and Shanghai(32.62) is on top of them. London(27.8) is among them. Comparing to cities from USA, Canada and Australia, Auckland(10.09) is behind the Vancouver(13.12), New York(12.95), Sydney(12.4) and San Francisco(12.11), higher than Toronto (8.5) and Melbourne (7.61).
House price to rent ratio 2017
In above chart, the higher ratio means lower profitability.
Regarding house price to yearly, median rent ratio, most of Asian cities have lower profitability. London (city centre 41, outskirt 32) is among them again. Auckland(23/21) is behind Vancouver (24/21) and Sydney(23/23) but before Melbourne (20/21), Toronto (19/20), New York (19/19), Brisbane (15/15) and San Francisco (15/15). Chicago is the best of all in the aspect of property investment profitability.
House price change percentage over or under valuation
This chart show the house price change percentage over or under valuation relative to long term averages across the OECD countries. Data is collected and summary at March 2017. The value above the long term averages means that house prices are overvalued.
New Zealand house price to income ratio by city
Auckland Central (11.54) and Queenstown (11.27) are on top of the list. West Auckland (8.83) is most affordable in all Auckland areas. Tauranga (7.24) and Hamilton (6.49) are right after Auckland and Queenstown as most unaffordable cities. Invercargill (2.95) and Wanganui (2.53) are most affordable cities of all.
New Zealand house price to rent ratio by city
Again, the Queenstown (34.52) and Auckland North Shore (33.9) are on top of the worst profitability cities. Porirua City (27.61), Hamilton (26.33), Tauranga (24.65) and Kapiti Coast Distinct (24.26) are right after Auckland and Queenstown. Wanganui (14.40) again is the most profitable in property investment.