The house-price-to-income multiple is a simplified, and internationality recognised measure of housing affordability.

It is referenced in Agenda 21 Chapter 7 of the United Nations Framework. It is the ratio between median house price and median annual household income, otherwise known as the median multiple. The World Bank states that this ratio is “possibly the most important summary measure of housing market performance, indicating not only the degree to which housing is affordable by the population, but also the presence of market distortions”.

A median multiple of 3 TIMES is a very good marker of housing affordability.

The Median Multiple can vary across New Zealand, as it is calculated by between median house price and median annual household income based on region. The below table outlines the Median Multiple for New Zealand’s main centres as of September 2018.

You will need to meet certain criteria, such as fall under required income thresholds, to be eligible to purchase affordable housing with HUB. You can learn more about affordabily, criteria and support via our Buying a Home page, or Contact Us to make an enquiry.

HUB’s 4^th Principle encompasses an integration of all project activities.

HUB incorporates strategic, long-term partners on pre-agreed contractual terms that incorporate continuous improvement targets. Through the HUB the client does not appoint design consultants, then contract with construction suppliers and then a different set of maintenance suppliers. This sequential approach does not promote integration and fails to realise the benefits of integration – resulting in inefficiencies and lack of affordability.

Within the HUB supply chain maintenance contractors are central in influencing design and specification. Construction and maintenance delivery are also more predictable as the integrated contractor supply chain members and cluster leaders have, from project initiation, been closely involved in the earliest stages of design and specification.

Through the use of cluster leadership within a value management and risk management framework HUB design strategy produces:

• Optimised functionality
• Delivery of design values important to the client
• Optimised buildability to reduce construction durations
• Designs that reduce annual maintenance costs
• Optimised whole-life costs through effective material specification

Once design has been completed, cluster leaders are responsible for the price of the work that falls within their cluster. Each cluster is responsible for driving out unnecessary cost, such as duplications preliminary costs, whilst ensuring that quality is not compromised and that fair and predictable margins are maintained.