A survey by The Urban Advisory finds that Kiwis are looking for more housing choices including options for co-housing, rent-to-buy, residential co-operatives, community land trusts and shared ownership models. Unaffordability remains a key issue.
The broad support for diversified housing products suggests that, by sticking to a limited number of traditional housing models, developers may be missing opportunities to create the housing and spaces Kiwis desire.
“There’s a big gap between what people want and what sort of housing is being delivered. The gap is between the public housing sector and the private market. To bridge it will require flexible support and more housing options,” says Dr Natalie Allen, Managing Director at The Urban Advisory.
“Until the gap is understood, which is the purpose of this ongoing research, and addressed, New Zealanders won’t have the range of housing options they need to thrive,” says Dr Allen.
The survey found that New Zealanders are increasingly prioritising choice of housing type and tenure. This flexibility across life stages is seen as equally important as overall supply.
Older adults seeking to downsize, financially stretched households and those seeking culturally grounded housing have few options.
The following types of structure were supported by respondents:
- Co-housing (59 percent)
- Community land trusts (29 percent)
- Residential co-operatives (32 percent)
- Shared Ownership (23 percent)
- Rent to buy (34 percent)
- Built to rent (19 percent)
While New Zealand’s housing encompasses public housing to market ownership, the reality is that there is a significant under supply of housing options in the middle of the continuum.
New Zealand has few assisted housing programmes or community-living tenures available, and it is impacting housing supply, the rental market and the ability for many of eventually attaining home ownership.
It also means that if people aren’t able to afford market rental and ownership products, they are forced on to the social housing register rather than having options before reaching the level of need.
“This limited housing diversity means that many New Zealanders are under-served, particularly in the assisted sector of the housing continuum,” says Dr Natalie Allen, Managing Director at The Urban Advisory.
“This gap is a critical issue because secure tenure is foundational to positive social and economic outcomes for people. The lack of options poorly serves this ‘missing middle’, and they are key segments of the population that include our rapidly aging population, Māori and Pacific Island peoples and the key workers that keep our towns and cities going”.
Renters’ dilemma
The situation is worse for renters; nearly three-quarters are dissatisfied with the housing choices available to them. And while 75 percent of homeowners “strongly agree” that their home is stable and secure, only 30 percent of renters feel the same.
Most renters expect their next move will be by choice and 47 percent plan to move in the next year. However, nearly 20 percent anticipate being forced to move.
“These statistics highlight the stark disparities in housing experiences across New Zealand. For some, a lack of housing mobility means they’re stuck in place, even when they want or need to move.
“For many others, constant relocation is the norm, driven by the absence of affordable, suitable options. This instability has far-reaching consequences, directly affecting educational attendance, academic outcomes, and economic productivity.” says Dr Allen.
Aging challenges
For those aged 65+, satisfaction with their current living situation leads to a strong desire to “age in place”. Among those aged 75 and over, 91 percent say their housing feels “stable and secure”, and 64 percent say they “don’t intend to ever move.
“Even among those aged 65-74, some 37 percent share that view. While this stability is positive for individuals, it means fewer homes are freed up for younger families – especially as many older homeowners choose to stay in larger homes rather than downsize,” says Dr Allen.
“The early data is telling us that when older New Zealanders say they want to age in place, many actually mean age in their community among their support networks, friends and family.
“It does not necessarily mean age in their current dwelling. Many want to downsize and stay in the area, but finding suitable housing options is hard. We can see that even those with means will only downsize given the right circumstances,” she says.
Those over 65 years of age want the right services and facilities nearby, and the data show the most important are:
- Medical care 94 percent
- Local food providers and supermarkets, both at 93 percent
- Community facilities, and parks and nature, both at 90 percent
- Public transport at 83 percent
Additional insights
Nearly 60 percent of all respondents said they had to make at least one compromise or sacrifice to meet the rising cost of living:
- Delaying access to medical services (24 percent)
- Sacrificing family gatherings or holidays (24 percent)
- Not heating or cooling the home as much as needed (23 percent)
- Sacrificing recreational activities (22 percent)
- Economizing on food, eg skipping a meal (21 percent).
Almost a third of respondents reported that meeting their cost of living required them to make more than three sacrifices or compromises.
The primary financial reasons renters gave for not planning to own their next home were:
- 53 percent said they can’t afford to buy anywhere
- 41 percent said they can’t afford to buy where they want to live
- 39 percent said houses are not worth the prices
- 30 percent said they were saving for a deposit, but that it is hard when living costs are so high
- Homeowners, more than renters, strongly agreed that their home or housing situation is safe and secure (75 percent vs 30 percent respectively)
- The supply of quality townhouses close to amenities has not kept pace with the rapid increase in their popularity: 59 percent of respondents would consider living in a townhouse but only 36 percent do. Planners and developers should note that this unmet demand for townhouse supply.
- Neighborhood features are a key consideration for over 40 percent of Kiwis when choosing a place to live, with the highest priorities being safety from crime and proximity to services and amenities such as schools and public transport.
- The three most important features people look for in a property were: Safety from natural hazards was rated as “Important” by 84 percent of respondents; energy efficiency was rated as “Important” by 68 percent and garden or outdoor space was rated as “Important” by 58 percent.
Key findings include:
- There is a strong appetite for alternative housing models, with co-housing the top option with 59 percent support
- Most renters expect their next move will be by choice, but nearly 20 percent anticipate being forced to move
- Nearly 75 percent of renters expressed dissatisfaction with the housing options available to them
- 53 percent of non-homeowners said they didn’t own a home because they ‘can’t afford to buy anywhere’.
About The New Zealand Housing Survey
The New Zealand Housing Survey is a nationwide, longitudinal study designed by The Urban Advisory and analysed by the University of Auckland
About The Urban Advisory
The Urban Advisory specializes in providing comprehensive, actionable advice to deliver better housing and urban development outcomes.
