PHOTO: NZ has a housing crisis. Getty Images/Newshub.
Nine in 10 adults think younger Kiwis are being “locked out” of the housing market, despite it being overwhelmingly seen as a “ticket to long-term financial security”, a new survey has found.
Most people in ‘Generation Rent‘ – aged 18 to 39 – are looking to buy in the next five years, the Financial Services Council (FSC) survey found, but nearly half of them say one of their main strategies is waiting for prices to come down.
“It is becoming more out of reach, and it seems the majority of Kiwis agree, whether they’re Gen Renters or not,” said FSC chief executive Richard Klipin.
“The barriers to entry are a combination of increasing house prices, ability to save for a deposit and availability of property in areas where people want to live.”
House prices have doubled in the past seven years, most of that rise coming in the past 18 months as record-low interest rates made borrowing cheap.
The FSC, which represents insurance companies and financial service providers, surveyed more than 2000 Kiwis in April for their views on investment and housing.
Of those, 559 were non-homeowners actively looking to buy. In addition to waiting for prices to drop (40.4 percent of ‘Generation Rent’), they’re also cutting back on “lifestyle expenses” (63.5), working overtime (34.8 percent) living with their parents or friends (24.7), taking on second jobs (21.5) or even looking at moving out of the city (21.3).
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