Otago remains one of the most affordable parts of New Zealand in which to live, but also contains the area that is the least affordable.
The latest Massey University home affordability report shows that for the quarter ending August 31, affordability across the country continued to improve, up 2.3% on top of an 8.5% improvement in the May quarter.
The report, prepared by Prof Bob Hargreaves, said in the August quarter the average weekly wage dropped slightly and house prices increased.
"But these two affordability drivers were more than offset by a 5% reduction in the average weighted mortgage interest rate."
The Central Otago-Lakes region remained the least affordable, followed by Auckland, then Wellington, the report said.
For the quarter, it had a 0.8% improvement in affordability and an 18.1% improvement for the 12 months.
Southland retained its place as the most affordable region, with Manawatu-Wanganui second and Otago third.
Otago's affordability improvement for the quarter was 2.4%, and for the year 17.7%.
