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The best place to work and buy a home in NZ - 13th Oct 2017

The best place to work and buy a home in NZ

In Taranaki, pay increases have just about kept up with house prices. In Auckland, workers are far behind.

Taranaki has come out tops as the region where the rate of wage growth has best kept up with the increase in house prices.

Analysis by the Weekend Herald shows median weekly earnings in the Taranaki region grew 19.88 per cent to $959 during the four years from June 2013 to June 2017, while the average house price grew 20.3 per cent to $285,967.

That compares with the Auckland region - the worst performer on this measure - where wage growth was just 14.51 per cent to $1010 a week, compared to house price growth of 63.45 per cent to $1.05 million.

Nationwide median wage growth was 14.71 per cent across the four-year period to $959, compared to average house price growth of 44.83 per cent to $639,051.

The data highlights the extent to which economic progress in the current environment has been weighted towards those with assets.

Wage inflation is typically benchmarked against the consumer price index, which does not include house price inflation.

Using more traditional macro-economic measures, Taranaki's economy has been one of the poorest performers over the past four years.

The ASB Regional Economic Scorecard - which measures performance based on employment, wages, house prices, retail sales, new car sales and construction - has placed the region near the bottom of its rankings.

In 2016 it was the lowest ranked region as it suffered from the slumps in the dairy and oil and gas sectors, which dominate its economy.

Other regions where wage growth has also maintained some proximity to house price growth include Southland (where house prices rose 19.6 per cent compared to wage growth of 14.27 per cent), Canterbury (housing up 23.1 per cent and wages 14.05 per cent) and Manawatu/Wanganui (housing up 25.35 per cent and wages up 15.07 per cent).

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