A study by Massey University's Real Estate Analysis Unit shows that home affordability has improved nationally by 4.9% in the last 12 months, compared with 2.9% last year.
Affordability is based on house prices, interest rates and average incomes.
The director of the unit, Bob Hargreaves, says interest rates are encouraging first home buyers to enter the market which is also putting pressure on the housing market.
Mr Hargreaves says house prices in Auckland will continue to rise in the short term while interest rates stay low and construction is subdued.
Improved affordability has been mainly due to low mortgage interest rates, but in Auckland, price rises have more than offset this, he says.
Mr Hargreaves says house prices in Auckland will continue to rise in the short term while interest rates stay low and construction is subdued.
