Changing Home Ownership
A recent Massey University/Real Estate Institute of NZ Survey of 350 people renting properties was designed to identify the motives and circumstances of those renting rather than owning property. The results show that NZers prefer to own their own homes, with 60% of those surveyed saying they planned to own their own, 30% within 3 years. But people are finding that goal increasingly harder to achieve, with financial constraints and job security being the two largest impediments to achieving home ownership (home ownership in NZ has fallen from a world high of 73.7% in 1986 to 66% by 2001).
Sixty-two percent of respondents specifically cited lack of job security as the main employment-related reason determining their decision not to buy. Financial constraints were illustrated by the finding that 44% found they were unable to save a deposit because of insufficient income, and an additional 27% identified the need to clear existing debt as their primary financial goal. In overall rankings, financial circumstances were cited by 71% of respondents as reasons for not buying a home while other factors such as career and lifestyle scored less than 15% each.
Other survey findings were that factors driving the trend to renting, include:
- labour market changes, including corporate downsizing and global competition, and shorter worker contracts; and
- societal changes, with families forming later and delaying marriage and children, and more solo parents and single person households.
Factors found appealing about home ownership, include: lifestyle, security of tenure, pride of ownership, status, ability to alter to suit, property owning democracy, investment “good” (ownership), and consumption “good” (provides shelter, privacy, a desirable location, and superior amenities).
Contact for Enquiries
The Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: 0800 00 83 33
Fax: +64 4 894 0720
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