Housing Affordability Measure

The Housing Affordability Measure (HAM) measures shifts in housing affordability. It doesn't set a level at which housing is or isn't affordable.

About the Housing Affordability Measure

The Housing Affordability Measure (HAM) measures household income — after paying for housing costs — for 2 subsets of the population:

  • potential first home buyers population, and
  • renters.

Affordability is calculated using data from Stats NZ's Integrated Data Infrastructure (IDI) to measure income at the household level.

Housing costs — the rent lodged on tenancy bond forms for renters and mortgage payments, rates and insurance for potential first home buyers — are then subtracted. The remaining household income is then adjusted to reflect the fact that larger households generally need larger incomes.

The Ministry of Business, Innovation and Employment (MBIE) developed these 2 indicators, and is making regular adjustments to:

  • the method used to create HAM, and
  • how it's presented.

More information on Housing Affordability Measures

October 1, 2018

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