High prices challenge Kiwi buyers
A recent Kiwibank survey of more than 2,000 people reveals that a significant portion of aspiring homeowners, particularly millennials, doubt they’ll ever own property.
While most Kiwis still dream of owning a home, the reality of high deposits, elevated prices, and affordability challenges have made homeownership seem out of reach for many.
The Kiwi dream dims for many
Kiwibank’s chief executive, Steve Jurkovich (pictured above), expressed concern over the findings, noting that the dream of homeownership – once synonymous with stability and security – has become elusive for a large portion of New Zealanders, RNZ reported.
“It remains the quintessential goal for many Kiwis, offering not just a roof over their heads, but security and stability for themselves and their families,” Jurkovich said.
Millennials hit hardest by market conditions
The survey showed that millennials (ages 30-44) feel the most disheartened, with 70% believing they may never be able to buy a home.
They’re closely followed by Gen X (45-59) at 63%, Gen Z (18-29) at 59%, and Baby Boomers (60+) at 57%.
Rising interest rates, cost-of-living pressures, and fluctuating property values are creating significant obstacles across age groups.
Alternative paths to homeownership gain traction
Jurkovich said that despite the challenging environment, Kiwis are starting to embrace alternative routes to homeownership.
Creative solutions, such as rent-to-own models, co-ownership with family or friends, community housing initiatives, and cross-leasing arrangements, are becoming more common.
“Kiwis are becoming more open to creative solutions to getting on the ladder,” Jurkovich said. “We need to think differently about home ownership options in New Zealand.”
The role of banks and property industry
Jurkovich believes the banking and property sectors have a role to play in promoting these alternative options, making them more accessible to those who want to buy.
The Kiwibank boss sees the evolving landscape as an opportunity for institutions to support new pathways to homeownership, helping Kiwis redefine what home ownership can look like in today’s market, RNZ reported.
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