Photo: Unsplash/ Jakub Żerdzicki
- Kiwibank survey shows 85 percent want own their own home
- Thirty-two percent believe it will never happen
- Nearly two-thirds of non-owners feel locked out of the property market
- High prices, interest rates, struggle to raise deposit are barriers
- Kiwibank CEO says there's a need to develop alternative ownership options
About a third of would-be home owners think they will never own their own house despite an overwhelming majority aspiring to be property owners.
A new report based on a survey of more than 2000 people by Kiwibank showed high deposits, stretched house prices, and poor affordability were among deterrents for those hoping to buy their own house.
The bank's chief executive Steve Jurkovich said the "Kiwi Dream" of home ownership has faded for many people.
"It remains the quintessential goal for many Kiwis, offering not just a roof over their heads, but security and stability for themselves and their families."
He said the research offered clear data on key factors and attitudes affecting would be home owners and insight into alternative ways to achieving ownership.
"While the landscape has evolved - challenges such as rising interest rates, living costs, and fluctuating house prices - innovative solutions are paving the way for Kiwi to carve out their unique journeys toward homeownership."
Millennials feel the frustration
Steve Jurkovich Photo: Kiwibank
People aged between 30 and 44 (millennials) were the ones feeling the most locked out of the market at 70 percent of respondents, followed by those in the 45-59 age group (GenX) at 63 percent, closely followed by 18-29 (Gen Z) at 59 percent, and the over-60s (Boomers) on 57 percent.
However, Jurkovich said alternative and creative paths to home ownership were emerging and gaining greater recognition.
"Kiwi are becoming more open to creative solutions to getting on the ladder with most New Zealanders believing that we need to think differently about home ownership options in New Zealand."
Among the alternatives becoming more recognised and used were: rent-to-own schemes, co-ownership with a partner, family member, or the like, community housing, and cross-leases.
He said the banking and property sectors needed to do more to promote the various options and make them available to those seeking home ownership.