Nearly 75% of Kiwis who rent are dissatisfied with the housing choices available to them. That’s a key finding of the New Zealand Housing Survey, a study released today by The Urban Advisory, a leader in urban strategy and planning. The study finds that Kiwis are demanding more housing choices, including options such as co-housing, rent-to-buy, residential co-operatives, community land trusts and shared ownership models, as poor housing mobility and unaffordability bite.
Key findings include:
- There is a strong appetite for alternative housing models, with co-housing the top option with 59% support
- Most renters expect their next move will be by choice, but nearly 20% anticipate being forced to move
- Nearly 75% of renters expressed dissatisfaction with the housing options available to them
- 53% of non-homeowners said they didn’t own a home because they ‘can’t afford to buy anywhere’.
The report shows there is broad support for diversified housing products, suggesting that, by sticking to a limited number of traditional housing models, developers may be missing opportunities to create the housing and spaces Kiwis desire.
New Zealanders are increasingly prioritising choice in housing type and tenure. This flexibility across life stages is seen as equally important as overall supply. Older adults seeking to downsize, financially stretched households, and those seeking culturally grounded housing have few options.
The following types of structure were supported by respondents:
- Co-housing (59%)
- Community land trusts (29%)
- Residential co-operatives (32%)
- Shared Ownership (23%)
- Rent to buy (34%)
- Built to rent (19%)
While New Zealand’s housing continuum encompasses public housing to market ownership, the reality is that there is significant under supply of housing options in the middle of the continuum. New Zealand has few assisted housing programmes or community living tenures available and it is impacting housing supply, the rental market, and the ability for many of eventually attaining home ownership. It also means that if people aren’t able to afford market rental and ownership products, they are forced on to the social housing register rather than having options before reaching the level of need.
“This limited housing diversity means that many New Zealanders are underserved, particularly in the assisted sector of the housing continuum,” says Dr Natalie Allen, Managing Director at The Urban Advisory. “This gap is a critical issue because secure tenure is foundational to positive social and economic outcomes for people. The lack of options poorly serves this ‘missing middle’ and they are key segments of the population that include our rapidly aging population, Māori and Pacific Island peoples and the key workers that keep our towns and cities going”.
Sacrifices made
Nearly 60% of all respondents said they had to make at least one compromise or sacrifice to meet the rising cost of living.
- Delaying access to medical services (24%)
- Sacrificing family gatherings or holidays (24%)
- Not heating or cooling the home as much as needed (23%)
- Sacrificing recreational activities (22%)
- Economising on food, e.g. skipping a meal (21%).
Nearly a third of respondents reported that meeting their cost of living required them to make more than three sacrifices or compromises.
The primary financial reasons renters gave for not planning to own their next home were:
- 53% said they can’t afford to buy anywhere
- 41% said they can’t afford to buy where they want to live
- 39% said houses are not worth the prices
- 30% said they were saving for a deposit, but that it is hard when living costs are so high
The situation is worse for renters; nearly 75% express dissatisfaction with the housing options available to them. And while 75% of homeowners “strongly agree” that their home is stable and secure, only 30% of renters feel the same. Most renters expect their next move will be by choice and 47% plan to move in the next year. However, nearly 20% anticipate being forced to move.
“These statistics highlight the stark disparities in housing experiences across Aotearoa. For some, a lack of housing mobility means they’re stuck in place, even when they want or need to move. For many others, constant relocation is the norm, driven by the absence of affordable, suitable options. This instability has far-reaching consequences, directly affecting educational attendance, academic outcomes, and economic productivity.” says Allen.
With aging come challenges
For those aged 65+, satisfaction with their current living situation leads to a strong desire to ‘age in place’. Among those aged 75 and over, 91% say their housing feels “stable and secure”, and 64% say they “don’t intend to ever move.” Even among those aged 65–74, 37% share that view. While this stability is positive for individuals, it means fewer homes are freed up for younger families –especially as many older homeowners choose to stay in larger homes rather than downsize.
“The early data is telling us that when older New Zealanders say they want to age in place, many actually mean age in their community amongst their support networks, friends, and family. It does not necessarily mean age in their current dwelling. Many want to downsize and stay in the area, but finding suitable housing options is hard. We can see that even those with means will only downsize given the right circumstances,” says Allen.
Those over 65 years of age want the right services and facilities nearby, and the data show the most important are:
- Medical care 94%
- Local food providers and supermarkets, both at 93%
- Community facilities, and parks and nature, both at 90%
- Public transport at 83%
Additional insights from the survey
- Homeowners, more than renters, strongly agreed that their home or housing situation is safe and secure (75% vs. 30% respectively)
- The supply of quality townhouses close to amenities has not kept pace with the rapid increase in their popularity: 59% of respondents would consider living in a townhouse but only 36% do. Planners and developers should note that this unmet demand for townhouse supply
- Neighborhood features are a key consideration for over 40% of Kiwis when choosing a place to live, with the highest priorities being safety from crime and proximity to services and amenities such as schools and public transport.
- The three most important features people look for in a property were:
Safety from natural hazards: Rated as “Important” by 84% of respondents
Energy efficiency: Rated as “Important” by 68% of respondents
Garden or outdoor space: Rated as “Important” by 58% of respondents
“There’s a big gap between what people want and what sort of housing is being delivered. The gap is between the public housing sector and the private market, and to bridge it will require flexible support and more housing options. Until the gap is understood, which is the purpose of this ongoing research, and addressed, New Zealanders won’t have the range of housing options they need to thrive” says Allen.