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Source change for incomes:
From the July 2007 Report onward, the source on which we base our estimates of weekly income, is now the LEEDS (Linked employer-employee data survey) data from Statistics New Zealand. This change has increased the accuracy of our estimations for specific age and region income classifications and reduced estimation error associated with the weekly income estimates.
The income used in the standard home loan affordability report is based on the regionalised LEEDS data for the 30-34 age group. The income used in the first home buyers report is based on the regionalised LEEDS data for the 25-29 year old age group.
LEEDS data is 'actual' for the period up until it is reported, and we estimate the periods up until the current one, based on a number of factors, including the wage-growth as reported by Statistics NZ in their 'Quarterly Employment Survey'. Revisions to these estimates can change the comparative data between reports.
The indexes prior to July used an average income measure also from Statiscs New Zealand, whereas the reports from July onwards use a median income for the specified age groups. The average income is positively skewed in relation to the median income measure.
Contact
For more information, contact
David Chaston
Publisher,
www.interest.co.nz
JDJL Limited
246A Jervois Road, Herne Bay
PO Box 47-756, Ponsonby
Auckland, New Zealand |
Phone: +64 (0)9 378-9140
Mobile: +64 (0)21 997 311
Fax: +64 (0)9 378-9141
Email: dchaston@interest.co.nz |
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Ineffective policy, unintended consequences
The affordability crisis
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