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Auckland is the least affordable region to buy a house, Massey University's latest home affordability report shows.
In the past quarter, homes slipped further out of reach of buyers in Auckland while in Central Otago Lakes, which previously held the top spot, affordability improved.
Affordability in Auckland has dropped by 5.8%.
Nationally, affordability dropped by 1.9% in the past quarter as the national median house price went up by 3%.
Professor Bob Hargreaves, from the University's School of Economics and Finance, who compiled the report, says in view of the financial turmoil in Europe it is surprising that house prices are increasing in several regions, Auckland in particular.
"However, very low mortgage interest rates combined with more relaxed lending criteria are combining to bring more buyers into the market and new construction is still at a very low ebb," he says.
Affordability deteriorated in Hawkes Bay by 11.4%, Manawatu/Wanganui 4.8%, Wellington 3.3%, Canterbury/Westland 2.6%, Nelson/Marlborough 2.4%, Otago 0.3% and Taranaki 0.1%.
But over the past quarter, just four of the 12 regions showed improvements; Otago/Lakes at 9.9%, Waikato/Bay of Plenty at 4.0%, Northland at 2.4%, and Southland at 0.9%.
Annually the all districts' national affordability index improved by 9.1%, compared with 8.4 % in the previous period. All 12 regions showed improved annual affordability.
