Wellington, July 29 2024-
Nearly 60 per cent of non-property owners in New Zealand feel buying a house is not within their reach, according to research published on Monday.
The research by Consumer NZ found 41 per cent of non-homeowners believed they were completely locked out, while 19 per cent said they were saving for a deposit, but couldn’t keep pace with the market.
The research estimated that one million New Zealanders feel that renting is their only option, Xinhua news agency reported.
Gemma Rasmussen, head of research and advocacy at Consumer NZ, said there are concerning consumer impacts to dwindling home ownership in New Zealand.
This echoes a report published by Deloitte this month which found home ownership in New Zealand had dropped below 60 per cent, the lowest since 1945.
Those aged between 40 to 49 years were most likely to have lost hope about ever purchasing a property, the research said, adding that those living in Nelson and the Bay of Plenty feel most locked out of the property market.
The dwindling home ownership prospects are due to a housing price boom post-pandemic which saw many snap up housing due to low interest rates and a great return on investment, as well as a low housing stock, followed by inflation and climbing mortgage interest rates, Rasmussen added.
He warns of the largest deterioration of housing affordability in New Zealand in decades.
However, the situation will not alleviate in the short term, with rising insurance costs due to weather volatility, rising energy costs, and increasing council property rates bumping up house values, he added.
The research showed renters are facing a lot of instability due to renting’s transient nature.
“Each move can contribute to feelings of instability and vulnerability,” Rasmussen said. (Agency)
