KEY POINTS:
The housing downturn is making homes more affordable, says Massey University.
Home affordability has now improved for three consecutive quarters, says Professor Bob Hargreaves, who heads the real estate analysis unit.
"The housing cycle is still in the downturn phase with sales at very low levels and sellers accepting lower prices than they could have achieved 12 months ago," he said.
On a national basis, homes are 4.1 per cent more affordable for the year to the end of August.
Affordability is based on a formula that looks at wages, house prices and mortgage interest rates.
Nine regions showed improved affordability over the year to August, led by Northland (10.5 per cent), Canterbury/Westland (4.8 per cent), Auckland (4.3 per cent), Taranaki (0.9 per cent), Waikato (0.7 per cent), Otago and Hawkes Bay (each 0.6 per cent), Central Otago Lakes (0.4 per cent) and Nelson/Marlborough (0.2 per cent).
Wellington was flat.
The regions to show a decline in affordability were Manawatu/Wanganui (10.5 per cent) and Southland (7.4 per cent).
An international housing afford-ability survey this year described Auckland, Wellington and Christchurch as "severely unaffordable".
Nationally, Australia and New Zealand have a housing affordability ratio of 6.6, compared with 5.5 in Britain and 3.7 in the United States.
The internationally accepted standard for affordability is that the median house price does not exceed three times the median household income.
HOW WE RATE
(House prices as a multiple of household incomes)
Australia and NZ - 6.6
Britain - 5.5
United States - 3.7
