This dramatic rise in affordable housing prices can be largely attributed to ‘ mortgage fatigue ’ – the burden of rising interest rates on owners of more expensive homes , whose larger mortgages and higher payments have limited the ability to ‘ trade-up ’. As a result , more affordable homes have become increasingly attractive , particularly in established neighbourhoods where their affordability and location offer greater appeal .
The national trend of affordable housing outperforming other market segments is most pronounced in the regions . The standout performer has been the Manawatū-Whanganui region , where entry-level homes surged an astonishing 270 per cent , rising from $ 95,000 a decade ago to $ 351,500 today . Regions such as Gisborne , Southland , and Hawke ’ s Bay have seen similar transformations , with their affordable segments growing by more than 200 per cent .
Source : Ray White Economics
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