Housing is Unaffordable for many in New Zealand
The Current Challenges Facing Everyday Kiwis
In New Zealand, housing affordability has reached crisis levels. The cost of homes has skyrocketed over the past few decades, far outpacing wage growth. As a result, many Kiwis are spending a large portion of their income on housing—whether through rent or mortgages—leaving limited funds, or nothing left, for essentials like healthcare, education, and fixing things that break.
The Impact on Kiwis:
High Rent Costs:
Nearly 40% of renters are spending over a third of their income on rent, making it harder to save for a deposit.
Limited Savings:
Families struggle to put money aside due to rising living costs, preventing them from saving for home ownership.
Generation Rent:
Many young adults are locked out of the housing market, often facing the prospect of renting for life with little hope of buying a home.
A Crisis with Far-Reaching Consequences
In 2019 Oranga Tamariki commissioned a report to examine the social effects of moving children from suboptimal housing to safe and secure housing. They found:
35%
Decline in truancy
24%
Decline in the need for treatment for substance usage
46%
Decline in suspensions
8%
Decline in the need for treatment for mental health issues
49%
Increase in the attainment of NCEA Level 2+
11%
Decrease in Hospitalisations
45%
Decline in serious offending
23%
Increase in employment for the whole year at age 20
The housing crisis affects more than just those struggling to find a home. It impacts:
Health and Wellbeing: Families in inadequate housing are more likely to face mental health issues, respiratory illnesses, and other chronic conditions.
Children’s Education: Frequent moves and housing instability can disrupt a child’s education, leading to lower academic outcomes.
Communities: When people can’t afford to live in stable, long-term housing, they may become disconnected from their communities, leading to weaker social bonds.
Traditional Solutions Aren’t Working
For years, government policies have focused on building more homes, but these efforts have not kept pace with demand, and in some instances have caused more harm than good. High mortgage rates, unaffordable deposits, and skyrocketing prices have made these options incredible hard for the average New Zealander.
That’s why we need a new approach—one that reduces the financial burden on homebuyers and ensures that Kiwis can afford to live securely and independently.
