This finding coincides with a Deloitte report published this month, which showed that home ownership in the country has dropped below 60%, marking the lowest rate since 1945.
Gemma Rasmussen, head of research and advocacy at Consumer NZ, expressed concern about the impact of declining home ownership in New Zealand.
“Our nationally representative research found that 41% of non-homeowners said they are completely locked out, while 19% said they were saving for a deposit but couldn’t keep pace with the market. We estimate that 1 million New Zealanders feel that renting is their only option,” Rasmussen said.
“Those living in Nelson and the Bay of Plenty feel most locked out of the property market, while those aged 40-49 are most likely to have lost hope about ever purchasing a property.”
Rasmussen highlighted several factors contributing to the decline in home ownership prospects. “A housing price boom post-Covid saw many snap up housing due to low interest rates and a great return on investment. Couple that with a low housing stock, followed by inflation and climbing mortgage interest rates, and we’re looking at the largest deterioration of housing affordability in Aotearoa in decades,” she said.
“Unfortunately, we may not be feeling much respite with rising insurance costs due to weather volatility, rising energy costs, and increasing council property rates bumping up house values. This leaves us with property landing in the hands of fewer people across the country, diminishing the age-old concept of homeownership as a rite of passage.”
Rasmussen also noted the instability facing renters, with 65% of those surveyed having lived in their rental for four years or less. “The transient nature of renting isn’t great for families who might be enrolling their kids in a local school, or for older New Zealanders who have limited incomes. Each move can contribute to feelings of instability and vulnerability,” she said.
Additionally, rental standards are a significant concern, with approximately one-third of renters experiencing problems with dampness and mould, and 21% saying they cannot afford to adequately heat their home. Rasmussen emphasised the need for stronger tenancy laws to protect renters, stating, “With a large and potentially growing number of renters, it’s important that our tenancy laws provide proper protection for tenants. All New Zealanders deserve to live in a healthy and safe home and have some certainty over their future.”
Broadcaster Chris Lynch is an award winning journalist who also produces Christchurch news and video content for domestic and international companies. Chris blogs at Chris Lynch Media - where this article was sourced.
“Our nationally representative research found that 41% of non-homeowners said they are completely locked out, while 19% said they were saving for a deposit but couldn’t keep pace with the market. We estimate that 1 million New Zealanders feel that renting is their only option,” Rasmussen said.
“Those living in Nelson and the Bay of Plenty feel most locked out of the property market, while those aged 40-49 are most likely to have lost hope about ever purchasing a property.”
Rasmussen highlighted several factors contributing to the decline in home ownership prospects. “A housing price boom post-Covid saw many snap up housing due to low interest rates and a great return on investment. Couple that with a low housing stock, followed by inflation and climbing mortgage interest rates, and we’re looking at the largest deterioration of housing affordability in Aotearoa in decades,” she said.
“Unfortunately, we may not be feeling much respite with rising insurance costs due to weather volatility, rising energy costs, and increasing council property rates bumping up house values. This leaves us with property landing in the hands of fewer people across the country, diminishing the age-old concept of homeownership as a rite of passage.”
Rasmussen also noted the instability facing renters, with 65% of those surveyed having lived in their rental for four years or less. “The transient nature of renting isn’t great for families who might be enrolling their kids in a local school, or for older New Zealanders who have limited incomes. Each move can contribute to feelings of instability and vulnerability,” she said.
Additionally, rental standards are a significant concern, with approximately one-third of renters experiencing problems with dampness and mould, and 21% saying they cannot afford to adequately heat their home. Rasmussen emphasised the need for stronger tenancy laws to protect renters, stating, “With a large and potentially growing number of renters, it’s important that our tenancy laws provide proper protection for tenants. All New Zealanders deserve to live in a healthy and safe home and have some certainty over their future.”
Broadcaster Chris Lynch is an award winning journalist who also produces Christchurch news and video content for domestic and international companies. Chris blogs at Chris Lynch Media - where this article was sourced.
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