The proportion of people living in their own home was the lowest in almost 70 years at the time of the 2018 Census, and homeownership is becoming much less common for younger people, Stats NZ said today.
A new report Housing in Aotearoa: 2020 brings together a range of housing information, including homeownership data, to paint a picture of the state of housing in New Zealand today.
Census data shows that homeownership peaked in the 1990s at 74 percent and by 2018 had fallen to 65 percent of households, the lowest rate since 1951. However, homeownership rates appear to have been more stable between 2013 and 2018.
| Census year | Percent |
| 1916 | 53.2 |
| 1921 | 59 |
| 1926 | 61.2 |
| 1931 | |
| 1936 | 50.5 |
| 1941 | |
| 1945 | 56.8 |
| 1951 | 61.5 |
| 1956 | 66.4 |
| 1961 | 68.9 |
| 1966 | 69 |
| 1971 | 68.1 |
| 1976 | 69.6 |
| 1981 | 71.2 |
| 1986 | 73.7 |
| 1991 | 73.8 |
| 1996 | 70.7 |
| 2001 | 67.8 |
| 2006 | 66.9 |
| 2013 | 64.8 |
| 2018 | 64.5 |
“Despite house prices rising faster than incomes in recent years, homeownership rates between 2013 and 2018 were relatively stable, which may reflect first home buyers taking advantage of Kiwisaver deposits and low interest mortgage rates,” lead author Dr Rosemary Goodyear said.
Homeownership rates have fallen for all age groups since the early 1990s, but especially for those in their 20s and 30s.
In 1991, 61 percent of people aged 25 to 29 years lived in an owner-occupied home. By 2018, this had dropped to 44 percent. Similarly, for those aged in their late 30s, the rate dropped from 79 percent in 1991 to 59 percent in 2018.
| Age group by years and total | 1986 | 1991 | 1996 | 2001 | 2006 | 2013 | 2018 |
| 0-4 | 67.3 | 67.6 | 60 | 56.9 | 56.3 | 51.8 | 55.1 |
| 5-9 | 73.9 | 74.1 | 67.4 | 62.2 | 60.7 | 57.4 | 58.7 |
| 10-14 | 79.4 | 78.6 | 74.1 | 67.9 | 65.4 | 61.6 | 62.9 |
| 15-19 | 74.2 | 73.6 | 69 | 64.3 | 62.9 | 59.2 | 61.1 |
| 20-24 | 52 | 51.3 | 46.7 | 42.4 | 42 | 40.7 | 44.4 |
| 25-29 | 61 | 60.5 | 52.4 | 47.2 | 44.1 | 40.7 | 43.7 |
| 30-34 | 73.4 | 72 | 64.9 | 59.1 | 55.8 | 50.1 | 51.1 |
| 35-39 | 79.8 | 78.8 | 73.7 | 68.1 | 64.8 | 59.7 | 59.2 |
| 40-44 | 82.9 | 83.1 | 79 | 74 | 71.1 | 66.1 | 65.7 |
| 45-49 | 84.3 | 84.9 | 82.6 | 77.9 | 76 | 71 | 70.3 |
| 50-54 | 85.4 | 86 | 84.1 | 80.8 | 79.6 | 75.2 | 73.9 |
| 55-59 | 86.4 | 87 | 85 | 81.5 | 82.3 | 78.6 | 77.2 |
| 60-64 | 87.3 | 87.5 | 85.4 | 81.5 | 83.1 | 80.8 | 79.5 |
| 65-69 | 86.6 | 87 | 85.5 | 82 | 83 | 82.2 | 80.9 |
| 70-74 | 85.2 | 85.4 | 84.6 | 82.4 | 82.4 | 82.1 | 81.1 |
| 75-79 | 83.6 | 83.6 | 82.5 | 81.9 | 81.2 | 80.8 | 79.1 |
| 80-84 | 82.2 | 81.5 | 80.1 | 79.7 | 79.4 | 79.4 | 77.4 |
| 85-89 | 80.6 | 80.4 | 78.1 | 78.6 | 76.6 | 78.4 | 76.1 |
| 90+ | 80.8 | 81 | 77.9 | 78.7 | 75.4 | 77.6 | 75.8 |
| Total | 75.2 | 75.2 | 70.9 | 67.4 | 66.4 | 63.7 | 64.3 |
“Homeownership rates for younger people have seen significant falls since the 1990s; however, ownership rates for those aged 60 years and over have only fallen slightly,” Dr Goodyear said.
“This may be because the baby boomer generation was more likely to get a foot on the property ladder earlier than young people today.”
With the decline in homeownership, a higher proportion of households are now renting. At the time of the 2018 Census, 32 percent of households were living in rented homes.
“Price indexes show that rents have risen in line with incomes nationally but have outstripped income growth in centres like Wellington and Auckland where markets are particularly competitive,” Dr Goodyear said.
Households that rent spend, on average, a higher proportion of their income on housing costs than people living in owner-occupied homes.
New data shows the state of Kiwi homes
New data sources in 2018 have provided the most comprehensive look to date, at the state of housing in New Zealand.
“New questions in the 2018 Census and the 2018 general social survey (GSS) provide a wealth of subjective data about housing, while a housing survey involving physical inspections of over 800 homes has added an objective lens,” Dr Goodyear said.
The pilot housing survey was conducted by the Building Research Association of New Zealand (BRANZ), and funded by BRANZ and the Ministry of Business, Innovation and Employment (MBIE). Participants were selected from households that had completed the GSS.
“The pilot housing survey was a first for collaboration of this nature between Stats NZ and BRANZ, and provided an invaluable link between subjective and objective data,” Dr Goodyear said.
“Linking physical inspections to GSS data shows the differences and similarities between how people assess the state of their homes and the assessment of a qualified inspector.”
More damp and mould in rented homes
The pilot housing survey showed that rented homes were more likely to be smaller, older, and in need of major repair, and less likely to have double glazing than owned homes. However, there was no significant difference in insulation between owned and non-owned homes. Rented homes more frequently had problems with mould and damp than owned homes, which was consistent with the results of the 2018 GSS and 2018 Census.
People living in rented homes were also more likely to report problems with cold, and less likely to have efficient heating sources such as heat pumps and wood burners.
Poor quality housing can have an impact on wellbeing. Just over half of people who reported four key housing quality problems in the 2018 GSS had low life satisfaction (0-6 on a scale from 0 to 10).
| | High overall life satisfaction | Low overall life satisfaction |
| None | 84.4 | 15.6 |
| One | 74.8 | 25.2 |
| Two | 67.4 | 32.6 |
| Three | 63.2 | 36.8 |
| Four | 45.7 | 54.3 |
Poor housing quality can also affect people’s health. People living in houses that were damp, cold, and mouldy had more frequent colds and flu, and were more likely to suffer from asthma. They also tended to have poorer mental wellbeing than those who lived in homes without these problems.
