Homeownership drops, renting concerns rise
Research by Consumer NZ in July revealed that 60% of non-property owners feel homeownership is unattainable.
A recent Deloitte report showed homeownership in New Zealand has fallen below 60%, the lowest since 1945.
Gemma Rasmussen (pictured above), head of research and advocacy at Consumer NZ, highlighted the alarming statistics.
“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,” Rasmussen said.
“We estimate that 1 million New Zealanders feel that renting is their only option.”
Regional and age-based disparities
Residents in Nelson and the Bay of Plenty feel most excluded from the property market, while those aged 40-49 have largely lost hope of ever purchasing a property.
“A housing price boom post-COVID, coupled with low housing stock, inflation, and climbing mortgage interest rates, has led to the largest deterioration of housing affordability in decades,” Rasmussen said.
Future challenges and rising costs
Rasmussen warned that rising insurance, energy costs, and increasing council property rates are further exacerbating the issue.
“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,” she said.
Renting as the only option
With renting as the only viable option for many, renters face significant instability.
“Out of the renters surveyed, 65% said they’ve been living in their rental for four years or less,” Rasmussen said. “The transient nature of renting isn’t great for families or older New Zealanders with limited incomes.”
Concerns over rental standards
Approximately one-third of renters reported issues with dampness and mould, and 21% cannot afford to adequately heat their homes, Consumer NZ reported.
“With a large and potentially growing number of renters, it's important that our tenancy laws provide proper protection for tenants,” Rasmussen said. “All New Zealanders deserve to live in a healthy and safe home and have some certainty over their future.”
Read the Consumer NZ media release here.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
