Just a reminder of how unaffordable the NZ housing market really is

In one of those regular reminders that the New Zealand housing market is one of the most unaffordable in the world, the small house I grew up in in the working-class Auckland suburb of Onehunga recently sold for NZ$1.35m. Admittedly it had been spruced up to within an inch of its life, increasing its resale value in inverse proportion to the removal of decades of character that can only be instilled in a property by basically refusing to update anything after the year 1970. 

Housing affordability has been declining in New Zealand for decades, with the amount of income required to buy the median house increasing from just under $60,000 in 1992 to  over $130,000 in 2021 (both amounts in 2021 dollar equivalents). At the end of that year the average New Zealand house was worth 8.8 times the average national income, when a ratio of three times the national income is usually regarded as 'affordable'.

The exorbitant and sadly non uncommon sale price for a modest family home led me to the internet to find comparisons. How far would the purchase price of this unglamorous former State house get you in the heady world of international real estate?

Melbourne 

The famously pricey real estate of the Victorian capital brings plenty of superior options for your hard-earned NZD. For a taste of inner city living, why not plump for a 52nd floor apartment at 560 Lonsdale St in the central city? Obviously the views are incredible, but you'd need to not be afraid of heights. At A$1.1m it's well within budget, and at 122sqm it's even larger than the Onehunga house in question. 

Or if you prefer something a little more suburban, this three-storey brick townhouse in Windsor / Prahran just north of St Kilda offers three bedrooms and is near the famed shopping drag of Chapel St. A snip at A$1.1m.

London

The UK's capital is often most people's first experience of proper big-city exorbitance, but even here in a city of 9 million there are options for your NZD. Admittedly you won't be able to enjoy the fifth-of-an-acre section of the Onehunga property, but you'll make up for that with the riches of the global city lifestyle. You could opt for this two-bedroom apartment in a historic Edgware Rd apartment block (£550k), or if you prefer more room, there's the option of this four-bedroom Stratford terraced house in east London (£650k). Both are near the Tube and the Edgware Rd apartment is only a couple of blocks from Marble Arch and Hyde Park.

Tokyo

Even the real estate in Tokyo presents good competition for a buyer who doesn't mind relocating from Auckland. This Setagaya-ku four-bedroom townhouse in Shibuya City, West Tokyo, is on the market for ¥115,900,000 and has a floor area of 134sqm, plus a carpark.

New York

Surely New York must be unaffordable on Onehunga money? Well, you'd have to settle for a little less space, but for a mere US$795k you could own a Chelsea brick two-bedroom apartment (340 W 19th St) 340 W 19th St, only one block from the High Line and two blocks from the Hudson River. At 62sqm it's a little smaller than the Onehunga ex-State house, but most people would admit it's in a slightly more hip neighbourhood.

Or perhaps you might hanker after a slightly more rural outlook? One with ready access to great pastries and wine? In which case, I highly recommend...

Provence

This former sheepfold is in the heart of Provence near the village of Grambois. Your 750,000 Euros buys you rustic stone walls, timber-braced ceilings, four bedrooms and a spacious pool area. Hmm, Onehunga or Provence? I think we have a winner!