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.
