KEY POINTS:
City slickers beware: smaller centres are the best place to survive the recession, according to a new survey.
The ASB TopSpots report ranks the most affordable places to live, comparing house prices with incomes and considering other factors such as unemployment rates.
Jafa-haters won't be surprised to know
Auckand fails to feature, but so does Wellington, Christchurch, Dunedin and other major centres.
South Island towns and regions filled seven of the top 10 positions, with Southland topping the chart.
The highest-placed region in the North Island was Manawatu.
Report author Stephen Hart, who also wrote The Streetwise Homebuyer and Where to Live in Auckland, said the average home price in Southland was $207,000, less than four times the average household income.
"That's more than twice as affordable as in Tauranga, Auckland, Rodney and North Shore City," said Hart.
Southland also had cheap rent, low poverty levels and the lowest unemployment rate, 2 per cent.
"What's the point of living in a highly affordable area if it's crowded, deprived or has no jobs to speak of?"
Invercargill mayor Tim Shadbolt was thrilled with Southland's victory _ and the placing of his hometown in eighth place.
"We've known for a while we were the most affordable, so it's great to have it recognised. Your income may be slightly lower, but then you have more to take home for the weekends.
"You have a higher expendable income so you can have more fun. You can afford just pop over to Queenstown to ski for the weekend."
Shadbolt said "white gold" _ milk _ helped keep Southland's economy flowing. "We've got a lot of cows and with the [aluminium] smelter going strong, we are in a good position."
Proud Palmerston North mayor Jono Naylor said affordability was what made the Manawatu so attractive.
"You get all the benefits of the big city without the high costs. You can earn good money and have plenty left over at the end of each week."
But Kieran Trass, of the internet-based SuburbWatch service, warned affordability results could change as property values in bigger cities fall.
"I wouldn't get too excited about affordability just yet, there's still some way to go," he said.
"The Waikato's 10th placing on the list surprises me because I expect Hamilton prices to go down, but I guess it's the dairy industry that lifts it up.
"It's the farming income that seems to be skewing it."
WHERE TO LIVE?
The top 10 most affordable places in New Zealand are:
1: Southland
2: Selwyn
3: Timaru
4: Waitaki
5: Ashburton
6: Waimakiriri
7: Manawatu
8: Invercargill
9: Sth Taranaki
10: Waikato
