The recent Parliamentary Economic Review looked at the Household incomes and housing costs for the year ended 30 June 2020. Household income includes income from wages and salaries, self-employment, investments, government benefits, along with superannuation income. Some main points from the article:
- Annual average household income was $107,731
- Median annual household income was $88,327
- Data only covers nine months to March 2020 – Stats NZ unable to collect data during the COVID-19 lockdown.
Highest/lowest household incomes were:
- Auckland region had the highest average annual income at $128,747
- Wellington region $123,533.
- Manawatū- Whanganui region $85,841.
Housing costs include spending on rents and mortgage repayments (both principal and interest repayments), along with spending on property rates, and building-related insurance. NZ households spent an average of $21 of every $100 on household costs which is similar to 2019. Of those in rental accommodation 26.5% spent more than 40% of their household income on rental payments and other housing costs.
What level of income makes us happy? New Zealand 5th
However a “happiness premium” established by researchers at Purdue University, in the United States suggested that an individual salary of $178,328 (US$128,844) will make New Zealanders happy but as shown above our average household income is $107,731. Money and finance website Expensivity has calculated the salary level in each country that would prevent unhappiness. Researchers looked at data from 1.7 million people and cross-referenced their earnings and life satisfaction. They found that more money boosted happiness – but only to a point. Beyond that, further increases in income could actually lead to more unhappiness. New Zealand ranks as the 5th highest income required to achieve happiness.