The rate of home ownership is expected to tumble over the next 10 years, according to research released today.
There will be regional variations, with Auckland and Gisborne having the lowest proportions of people owning their own home and Marlborough the highest.
Overall, home ownership rates are projected
to drop by a whopping 5 percentage points, to 62 per cent between 2006 and 2016, according to the Centre for Housing Research, Aotearoa New Zealand (CHRANZ).
Its figures are based on the 2006 Census which showed young people were hardest hit when it came to the housing market.
Analysts found that the overall rate of home ownership in the 2001-2006 period was 66.9 per cent, down from 67.8 per cent from 1996-2001.
The latest figure has New Zealand roughly level-pegging with home ownership rates in Britain (68 per cent), the United States (68 per cent), and Australia (71 per cent).
We are well ahead of Germany (40 per cent), but lag behind Ireland's 80 per cent.
Those aged between 20 and 40 saw the greatest reduction in their share of owner-occupier tenure across both periods.
Within this figure are regional variations which predict that Gisborne and Auckland will have the lowest home ownership rates, at 57 per cent and 58.3 per cent respectively, with Marlborough the highest at 70.0 per cent, in 2016.
The number of owner-occupier households is expected to increase by 43,010 and renter households by 151,890 between 2006 and 2016.
The strongest growth in both owner-occupier and renter households is expected to occur in the Auckland region.
The projected growth figures do not include second homes, such as holiday homes, which are not rented to other households.
The highest proportion of multi-unit developments will continue to be in the Auckland and Wellington regions where the pressure on land supply is greatest, researchers said.
- NZPA
