Slight rise in incomes while housing costs are unchanged

Incomes showed a slight increase for the year ended June 2012, while housing costs were unchanged, Statistics New Zealand said today.

Average annual household income from all regular sources increased slightly from the year ended June 2011 to the year ended June 2012 – up 2.3 percent, from $79,256 to $81,067. Average weekly total housing costs were unchanged, at $249.

Contributing to this slight rise in household income was an increase in average annual household income from wages and salaries. This rose 5.4 percent over the past year, up from $77,843 to $82,029.

Within total housing costs, a slight increase in average weekly rent payments (from $261 to $273) was offset by a slight decrease in average weekly mortgage payments (from $375 to $357). The slight change in mortgage payments was due to a decrease in average weekly mortgage interest payments (from $254 to $234) over the survey period. Average weekly mortgage principal repayments were unchanged, at $147.

Because household income increased slightly while total housing costs were unchanged, the proportion of housing costs to household income decreased slightly over the past year (from 16.4 percent to 16.0 percent).

These results come from the Household Economic Survey (Income), which is a shortened version of the three-yearly full Household Economic Survey. It ran for the first time in the year ended June 2008. The shorter survey runs in each of the two years between the full survey – to collect data on household and personal income, living standards, and housing costs. Total housing costs include household expenditure on mortgages and loans, rent, rates, and building-related insurance.

See also:  Household Economic Survey (Income): Year ended June 2012  –  Information release