So, have you been wondering what "sustainable" house prices are? The Reserve Bank has been telling us NZ house prices are above "sustainable" levels - but it's not been clear to the great unwashed and would-be finance writers what 'sustainable' actually is. Well, hold on to your hats, 'sustainable' is apparently between 5% and 20% less than where the median house price is now, according to RBNZ analysis and modelling. Orr said there were a lot of things involved in looking at sustainable prices. House prices and sustainability could be looked at from either the perspective someone buying a house to live in it or as as from the perspective of an investor.

Source: Stuff May 05, 2022 01:48 UTC