Although there are still more households that own in their own home in this country than live in rented accommodation, home ownership is continuing to decline, with the number of renters growing at nearly six times the pace of owner-occupiers over the last decade.
The latest household tenure estimates from Statistics NZ show that in the 10 years from the end March 2006 to the end of March this year, the number of households living in their own homes increased by 4.2% while the number of households living in rented accommodation increased by 24.5%.
Statistics NZ estimates that at the end of March 2006, there were 1,546,300 households in this country, of which 1,033,900 were owner-occupiers (67%) and 446,500 (29%) were renters*.
By the end of March this year, the estimated number of household had increased by 150,200 to 1,696,500, up 9.78% over the 10 years.
Over the same period the number of owner-occupied households increased by 43,100 (up 4.2%), while the number living in rented accommodation increased by 109,400 (up 24.5%)*.
That means that number of renters increased at two and half times the rate of owner-occupiers in terms of absolute numbers, and nearly six times the rate in percentage terms.
As a result, the percentage of households living in their own homes has dropped to 64% in March this year, while those renting had increased to 33%*.
*Note: the percentages do not total 100% because they do not include households living in accommodation that is provided free.
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82 Comments
How can it be well in "Landlord Land" if the gross rental return, on a central Auckland property I sold last month was only 2.78%, in relation to the sales price? .
While on an overseas property, I am getting 15.8% gross rental return ?
At the risk of repeating myself, once the capital gains go out of the market and the market is "flat", negatively geared Auckland property investors are losing money.
@murray86 ...that's my point ..... that Auckland property I sold last month, I had owned for over 20 years and when I worked the sales price I got vs the gross rental return, I got my 2.78% return.
So anyone buying Auckland property now for investment, should do the "numbers" .......sadly many have run head long into this crazy market, driven by FOMO !
this policy will come back to bite future governments with the increased expense of housing and paying for housing the people.
dont be surprised to see in the next decade neg gearing gone.
rent controls in
as future governments try to cut back on the expense
the more renters there are the more money will flow out of the country in interest payments to overseas banks, hindering local GDP, all good in bank shareholder land
Not surprising. Here is the latest from renter land https://sinisterdisco.wordpress.com/
I rent a lovely house in Kohimarama but I also own a couple of inherited houses. Two of my houses are tenanted by people who are also landlords. They're fantastic tenants. I think next time I rent out a house I should stipulate to the prospective tenants not to bother applying unless they own a house themselves. All of my housemates are DINKS between 30 and 40 years old and we all earn good money. I dont think any of us has any interest in having any children. Auckland housing seems out of reach or too risky. Sometime when I bike home along Tamaki drive and I see all the coach loads of Chinese looking people I wonder if they're all there to buy houses. It makes me angry and sad that I didn't buy a house a few years ago, but then again I've never been good with money. One of my housemates earns over 200K per year and even she has no interest in buying a house in Auckland. I think all of us kind of have one foot out the door ready to leave NZ if we need to. Strange times that we live in.
Oh just wait for the smugness from those who have benefited from nothing more than luck and timing and then talk about how clever they were to get into the market years ago at reasonable multipliers to income ratios compared to now....what a poisoned chalice we have left to our young.
Sorry kids, we sold out for the big property CV..... "you can just rent off me forever"
God help this country - a country that was founded on the principle of everyone, irrespective of background at least having a crack at a fair go, a fair go to put a roof over their head, a fair go at having a family and a life without becoming indebted to a bank to 10x income (and that at record low interest rates hoping like hell they don't rise)
I guarantee you few on this site ever had to borrow themselves into oblivion like we're expecting the young, I sure as hell didn't.........as little as 15 years ago, comparatively rent v buying was a no brainer. Not any more.
Amazing to think in less than a single generation we've become a "screw you - I'm alright" country where if you don't come from the "haves" you are in big trouble....if you are not going to inherent you are really going to struggle to get further up the ladder. Some will, but most wont.
We will (and are already beginning) reap the cost of this socially ...it will come back to bite us all and no amount of electric gated communities will fix it - the change is irrevocable - " haves v have not's" makes for lots and lots of problems and I don't want my kids having that coming to visit them but it seems most don't see past the end of their latest property valuation.
Do I want my property value to plummet? Of course not, but good god, the foul odor of greed and lack of empathy towards others is simply staggering.
Growing up in NZ I would've never ever thought we'd be a country of self-perpetuating elitism, isn't that the original settlers left to get away from the entitled gentry - to become land owners?
No one in their right mind expects equal outcomes for all but it would be nice to think they at least had a starters chance wouldn't it?
Shame shame shame on us all - we sold out 100+ years of values to the highest bidders ...one day we'll really see what has happened here - the uncontrolled immigration to prop up GDP, NZ'ers made to bid against global money on local wage for a necessity of life (shelter), dirty money, overseas trusts and more importantly the greatest transference of wealth from the younger generation to the older ever seen - its a zero sum gain - nothing has been created - just moved. Our young are debt slaves to AUS banks so they can buy a rubbish house for a fortune off a 60 year old.....
Sad that a proud reputation of uncorruptibility that took 100+ years to build - destroyed in a few terms...cause "everybody is doing it" and we need a piece of the dirty action....
Sad rant over.....
God help this country - a country that was founded on the principle of everyone, irrespective of background.....
Is that really true though? The Immigration Restriction Amendment Act 1920 was specifically designed to keep New Zealand ethnically British. Even so life was fairly harsh for poor Pakehas and Maori prior to WW2. After WW2 the English speaking countries experienced rapid developments in social welfarism, even in the US, with returning servicemen getting special treatment with employment opportunities, housing and education, really quite a short 'golden' period. Massive changes in immigration followed and we now have a cosmopolitan, globalist, society. We cannot return to the 'good old days' because, firstly, I don't think people would accept the rules and restrictions of way back then and the UN would probably complain as well as it was rather exclusive.
Waves of immigration from the whole world are going to create an entirely different demographic landscape. You can probably kiss goodbye to incorruptibility and egalitarianism, now it is every man for himself. If we don't grab a piece of the action ourselves someone from some foreign shore will.
However it is not all bad. Young people have enormous opportunities. I was just yesterday marvelling at my new high speed Internet connection and the potential it has. Life is richer in a way, we just need to grab it and work with it. Things have changed forever and we need to work within this new paradigm.
As Zachary says, in This Brave New World, "now it is every man for himself. If we don't grab a piece of the action,someone from some foreign shore will."
Exactly what I would expect from a self confessed Trump supporter. If you can't get ahead,get trampled underfoot.
Just which of DT's many qualities does he admire most? His visceral racism or his misogyny , or perhaps the lies he regularly utters. Perhaps it's his grasp of foreign policy.
idealistic, but sadly I largely agree. But "Do I want my property value to plummet?" if it is a broad market fall, and my property value relative to others remains the same, then what is the issue? I would like to see related costs fall too, to maintain perspective, but I have not speculated or gambled on some mystical value of my property that means nothing until I want to sell it.
Young people have enormous opportunities.? Except for owning an affordable home right?
The high speed internet won't keep them or any family they may wish to have warm and dry in winter Zac. And NO!, I don't agree with:
"If we don't grab a piece of the action ourselves someone from some foreign shore will".
What's the value in 'citizenship' if its now just a global free for all of grabbing the land & homes off native/born citizens?
Dis-infranchising everyone with no loyalty to anyone. What a shit world that is!
Jesus man, what a f**king cop out! Maybe this has been the US mind set for decades you know.....but not here in my country mate. I will not ever accept that even if it makes me an enemy of the state.
@justice - bloody well said! I think the comments from Zac smith confirms my argument " the whole world is corrupt, get in on it!" Is acceptable to a scary amount of people....just throw away your own morals because other people are!
Hell no
And the comment about the new fangled 'inter-web" and how this will help ...wow, just wow. Obviously hasn't been out in the work force lately .....
Well, like you I'll damn well go down fighting and won't give up.
And as a sovereign country with borders made from oceans we can totally and completely control the quantity and quality of who we decide to allow in - it's just the money traders in charge ( who I regrettably voted for, more than once ;( ) would sell their grandmother to stay in power and short term prop up a failing GDP anyway possible even if the long term consequences are disastrous
I can't be the only Lifelong National voter who originally liked JK and now realises the disastrous path we are being taken on....... Duped, well and truly
I don't claim to be Nostradarmis(spelling) but I could see the future under Keys leadership before he was Prime Minister. I really don't understand what took you so long and even worse that the majority still don't want to see it.
I have five adult kids and luckily they are well educated and earning well, but it my be wasted on them in this world as they really don't give a rats about collecting money, Whanau is everything and enjoying simple things is where it's at, and Auckland is definitely the place not to be. I just hope they don't get swamped by this rising tide of excretement.
I agree young people have absolutely f a opportunities in Auckland. And thats why me, my wife and all my friends who grew up in AKL no longer live there anymore. Our kids are all happily growing up in Australia. If you are about to start a family don't it in AKL. Dont become indebted to a crippling mortgage to fund some 60 year olds pension. You deserve better than that. Every young Kiwi should leave they would be far better off.
There are plenty of opportunities in NZ but agree Auckland isn't really one of them. It does amaze me at the number of people who think NZ is Auckland. And yes i also grew up in Auckland and at different times in the past 20 years have lived there and in Sydney.
For me to have the lifestyle I currently have in Auckland, it would require and additional $200k income! To have the same home would be about $1.5m more I'd be spending at least an extra 1.5 hours per day sitting in traffic. The house that I run my business from on the edge of the CDB (and own) would also cost an extra $1m.
So my relatively comfortable lifestyle with a large lifestyle property, successful business and some commercial property investment would require so much extra work that the life balance would cease to exist...... but don't tell everyone still stuck in Auckland...... but then they wouldn't believe how good it is when you leave anyway.
Cracking post by the way mvgsmf. And I agree with you SpaceX.
For the record I was a Nat voter back in the day, never again. 3 terms was all it took them to completely ruin everything. I shouldn't really care about NZ anymore but when its the place you grew up in its hard not to.
Perhaps this will encourage young people to get off their arse and vote. They are always the lowest turn out but if they did they could change governments.
It is crushing having to wait another 2 months before being in a position to buy and thinking about how far prices will continue to move even in that short time in Tauranga.
I have always said it and will repeat it again. A lot of the younger people could have been on the property ladder but they have the wrong mentality about going about it. They are/were not content at getting on the property ladder on the bottom rung to climb the property ladder, they want to get on the ladder half way up. While they have waited to do this the ladder is being pulled up.
I would agree with you but the bottom rung is now higher than ever.
even to buy in otara they will need 100k + deposit at the moment, interest rates are lower than ever and prices increasing by double digit, so saving is a backwards motion.
the problem they have is competition from investors, here and overseas is overwhelming and until rules and incentives are put in to advantage FHB they are screwed
I don't know where Otara is but here in Rotorua until last year it was possible to by a property for around 150k with mortgage payments cheaper than rent. These properties are now showing significant increases in value which would have helped buyers up the ladder. The greatest growth in prices has been in the bottom quartile.
I agree read the comment near the top, someone on $200K PA and still not buying a house. The problem is every generation has higher expectations than the last. House prices are what they are, don't like it then rent or get out of Auckland. Simply no point going on about it, since when was it ever a God given right you could buy a house anyway ? I remember being told while on the OE in Europe, only like 30% of people owned a home in Switzerland back in the early 1990's. Its still possible here but its going to be an apartment or a bit of a dump you need to work on, not that $1.2M dollar house that's better than what your parents are living in.
Why is it a problem for very generation to have higher expectations...dont you? As for housing, as a country surely we should aspire to have a society where houses are affordable and not form part of an investors casino?
You type are part of the problem....dumbingly accepting the madness that the Nats are allowing to perpetuate as the 'norm' and acceptable. Policys that are in the interest of people and not the minority mates of key are what is required.
At a recent business meeting a respected mortgage broker informed the room that there has never been a better time to buy, with the lowest interest rates ever experienced.
We know this, the financial industry knows this, and you the buyers know this. The frustrating thing at present is the lack of properties on the market in central Auckland. Now is a superb time to be on the market, as the buyer pool is large, and very frustrated!
Never been a better time? Really – We’re 8 Years in to the biggest property boom in NZ’s history. The baby boomers are retiring. Commodities and global trade have all but collapsed. If you look at the mortgage debt charts on the interest web site both the first and second derivatives look negative. The only think propping it all up is Chinese money and just a month ago we were staring into an ugly abyss when it looked like they’d left the market. Have you forgotten that already. No no great time to buy!
Maybe I should have ended my comment above after the first paragraph. What I really wanted to get across was that the changes have been drastic and there is no way back, only forward. I think Spacex sort of gets this, "the dream is finished mate."
In a globalist world you can not afford to be egalitarian. You don't want to end up marginalized along with the others waiting for the dream to come true. Other people have arrived who are actively working on their dreams. I didn't mean to imply that one should be corrupt merely that corruption was coming because people are arriving from countries where it is endemic. Egalitarianism is likely to fail in a diverse culture where trust between people is reduced.
And you guys won't want to go back to the good old days, seriously, it was like North Korea here back in '65. You would need to give up a lot.
I've given this a lot of thought. Even wondered if you could start up some sort of Identitarian youth movement like they have in Europe. But Kiwis aren't into stuff like that. I don't think it would fly here. People I have spoken to are completely unreceptive to any sort of "New Right" ideas, hostile even. For instance everyone here seems to hate Donald Trump and mock Winston Peters. Yet Trump is the most revolutionary pro working/middle class candidate that the US has seen but young Kiwis refuse to see it. Young Kiwis mostly totally embrace the PC system we currently have. So I don't know what you can do other than work within the system.
Trump has the IQ of a watermelon. Judging from the amount of media coverage he’s getting I’d say he’s the establishments preferred candidate. Easily manipulated once he gets to power. Bernie left wing, yeah maybe, but perhaps that’s what’s needed after so much middle class destruction. Perhaps “the majority” might just get pissed off enough to vote in the Jeremy Corbyns and Bernie Sanders’ of the political world to power. You say “getting everyone to pay” That’s old school thinking. I think Steve keen has shown that low interest rates leading to rising private debt and government austerity are some of the underlying causes of middle class destruction.
" ... he’s [Trump] the establishments preferred candidate ..." You must be kidding. The establishment wants Hillary. Through her daughter she is married into Wall Street and even her abysmal failure as Secretary of State destroying Libya and Syria is all forgotten, as long as she will do the work of the establishment.
Hillary Clinton will be another terrible blow to the fortunes of decent people. Sanders and Trump are both big risks but probably worth a try after decades of inapt mainstream rule.
LOL, ok that's it lol, you are a troll.
He walks in bible held high, puts it down and then he LIES. That's why I call him Lyin' Ted.
I've told people at work that I support Trump and people look at me in disbelief, they say "he's a racist" blah blah blah. I'm still waiting for one person to quote him saying something racist.
Trump should have a capital T.
Don't know why I bother to explain this to you people but I am into 'identity politics'.
Identity politics are political arguments that focus upon the interest and perspectives of groups with which people identify.
You know, like how Maori support Maori political parties. Do you call them dumb?
My IQ is 137 btw.
....I credit Trump with awakening the voting public which has to be a good thing. He has also raised some very good issues (the war on Iraq, wasted trillions and 911 con being one). The press focus on the nutbar statements he makes, they do this because they are the establishment and he is rocking it. IMHO Cruz is worse.. he is a crazy religous red neck. Trump verse Bernie would be an epic election.
Trump and Sanders both speak genuinely for a section of the US who have been neglected and downtrodden. They see it and are voting. Trump has had the attention because he is so outrageous. But in my view Bernie Sanders is the interesting one. His rise in the last few weeks has been remarkable.
The eightfold path is a middle path. We cannot turn the clock back, but we also cannot let things simply continue as they are. The current immigration system is broken. It is not producing the right outcomes. We need immigration from countries on par or "better" than NZ and not from backward countries whose citizens - as you rightly point out - bring corruption, indifference towards social disadvantage and other social and cultural ills with them.
This is not a black and white issue i.e. either you crave for the narrow world of the sixties (which, incidentally, was well before my time) or you completely surrender to the false prophets of PC multicultural garbage. Somewhere in between would be best. Re-calibrate immigration, disown multiculturalism as an official policy, as it is inhumane to the many people who need the feeling of home and security. Above all, halt Muslim immigration because of the risks it carries regarding terrorism and further social disintegration.
Raising the quality of immigration while lowering its quantity may also reduce real estate price pressure and revive the - completely legitimate - Kiwi dream of a house for the family. Any society needs a shared vision to function, one beyond owning stuff or making money.
Yes, kids get indoctrinated by leftwing extremists at school and uni, but as soon as they have to earn their own living, pay tax, worry about kids etc they usually come to their senses. If Trump should become US president it would also shift the current PC paradigm in NZ. People are herd animals after all and it will become a lot more difficult to malign people like Winston.
I agree with what you have written however it will be a Herculean task to convince others. Even the disenfranchised, identity losing, youth of this city will be violently opposed to notions of immigration from countries on par or "better" than NZ . Reinstate The Immigration Restriction Amendment Act of 1920?
Young people think they are somehow fighting the establishment by supporting mass third world immigration when they are in fact just being useful idiots. There are even many who don't understand why we need borders at all. They have no concept of the numbers or they are nihilisticly and possibly unconsciously or even consciously seeing this as a way of punishing the Boomers by bringing the whole of our civilization down around us. I heard a student radio announcer saying the refugee crisis was the WW2 of 'our generation', meaning the young generation. The solution was not to defend or to fight against but to struggle to find a way to accommodate tens of millions of poorly educated and incompatible illegal migrants. That was how this struggle would be won.
Anyone advocating a fortress solution for Europe, Australia, New Zealand and North America is likely to be verbally or physically attacked by typical young people of today.
This is why I advocate the Global City concept where populations are divided along economic lines rather than ethnic lines - an economic fortress. It is not the best solution but the only solution possible within the new paradigm. There is no 'identity' as there once was now we have mass immigration. Auckland's population is rapidly becoming majority foreign born. I think we are second to Brussels in this regard.
Great cities have always become like this, dens of diversity, and in the past have been overthrown by barbarians or countryside peasants seeking revolution, often led by silly middle-class intellectuals seeking power (I'm probably one of those!). However there is no power left in the diminished countryside folk and we are entering the age of the Global Cities.
Remember how stupid we were when we went to uni? And remember how even back then there were these abnoxious student union left-wing ranters with their greasy hair and beer bellies? They are not representative. Yes, the West has lost its way big time. But looking at the Dutch referendum, the ascent of patriotic parties life the FN, AfD etc. across Europe, the last word has not been spoken.
Of course it is frustrating to witness how some people take their freedom and standard of living for granted and do not want to see how mass immigration from backward countries is ruining it. But I would stay cautiously optimistic that reason will eventually prevail. Maybe the next big economic crisis will shake things up ...
I can understand taking in as many refugees as possible as we are a part of the western alliance waging war in their countries. The non-refugees I'm not sure why the National Party is obsessed with bringing so many in. Perhaps there's the false hope that they will boost the economy, but the GDP per capita is going down. Everyone is getting poorer as a result.
That isn't a plot against baby boomers, it's a plot by the baby boomers in Parliament. They have signed a lot of agreements, including with China, to take it more migrants. I haven't seen any explanation as to why the Government is doing this.
I do not think that you can have "Western alliance" and multiculturalism at the same time. It is contradictory. If we are a multicultural society, then we are not to be held responsible for purported "Western" crimes. If we are Western, then why do we get immigrants from non-Western societies at all?
I think you are stuck in the 1980s. There is no "West" any more. There is also no "poor countries" any more. India has more dollar millionaires today than the US. There is a global class of politicians, managers, functionaries etc, the new 19th-century-type nobility, who have or perceive to have a lot more in common with each other than with the poor person of same nationality living around the corner.
These simple equations like "we are guilty", "we have to help", have to, must, are obliged etc. make zero sense in 2016. The world has moved on and so should you.
So Zac, when you say"I didn't mean to imply that one should be corrupt merely that corruption was coming because people are arriving from countries where it is endemic. are you saying we should accept it because it is a reality? I'd challenge you big time on this. We should fight any and all forms of corruption. the ideal should be egalitarianism because nations are ordinary people, and all should have a chance. Corruption is a poison that undermines the very fabric of a nation. the fact that it is human nature to attempt to influence out of self interest (the most basic form of corruption) doesn't mean that the world is better for it and it should be accepted. Integrity is the goal. We admire too many people who have been influential and power players while turning a blind eye to their inherent corruption. JK, HC come to mind. Brash was vilified while appearing to be the least corrupt of all our politicians.
What Zac is saying is that you either have a nation state which can be run as an egalitarian society, or you have an open mass immigration society in which people have nothing in common and hence do not feel solidarity for each other so that an egalitarian society becomes practically impossible.
Easy, no? Look at Germany's current experiment to extend its welfare state to Arabia and Africa. It is the political stupidity of the century. It does not, cannot and will not work. Germany's prosperity and social stability are history.
And if we keep going the way we are, it will end up in the same way albeit a little slower.
I've had enough. I'm exhausted. Dropped down to two jobs I'm sick of busting a gut and getting nowhere. Investing time into writing about this and unleashing some of the real issues from ground level to local and national MPs. Honestly, I've completely had it. Like someone else said, I'm not going to go down without a fight.
I really really hear you I do. I have heard this over and over again and I appreciate it but it's more complicated than I can even articulate. Eventually, I will just be pushed out though, I'm getting more and more sure of that. The impact it wlll have on my life will be huge but I doubt I'll have a choice in a few years time.
I think another party will get in, but only when John Key finally pulls the pin and decides not to run for another term and thats not going to happen before the next election. I see plenty of criticism directed his way and yet he has the major support. Not sure what to make of this so either there is a load more of "haves" than "have nots" or he lacks real competition and Labour simply cannot come up with a decent leader.
I think the last Labour leader's apologizing to all women on behalf of all men was so spectacularly out of step with the changing mood of the times that a lot of people don't even consider Labour anymore. Less PC, not more PC, is the way forward. Look to Trump and Putin for inspiration is my advice.
Phew, there are some heartfelt comments above! From a skim through them, I am amazed though, that apart from deserting NZ, I can see few/no suggestions as to how to overcome the obvious problems. I must say that I sit in a quite smug position having first bought in Auckland in 1975 and last year, picked up Mr Key's handout. Serendipitous timing, I know that. Given things are what they are, I would suggest there needs to be some sensible, effective legislation to properly protect the interests of tenants, so they cannot be dislodged and cast aside by rapacious 'landlords' only interested in capital gain, rather than a longterm return on a sound property investment.
Alternatively, the central planning banks around the Socialist world could stop printing money and manipulate interest rates, thereby halting the stampede into assets like NZ real estate.
Things are not what they are, but the way some people want them to be, to the detriment of the vast majority of our society.
Still, congratulations on the spoils. See on on the Danube river cruise.
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