Wednesday, September 22, 2021
International

NZ homeowners couldn’t afford to buy property if buying now

New Zealand homeowners

Nearly 58 per cent of respondents did not think they would be able to purchase their home at its current valuation, according to Consumer NZ

Three out five home owners would not be able to afford their property if they had to buy it at the current valuation, according to Consumer NZ.

According to the figures were gathered through the organisation’s sentiment tracker, nearly 58 per cent of respondents did not think they would be able to purchase their home at its current valuation, 9 per cent did not know, and 33 per cent said they could.

For people who did not own property, more than 40 per cent felt totally locked out of the market, the tracker found.

Consumer NZ spokeswoman Gemma Rasmussen said housing was respondents’ biggest concern, even above Covid-19.

Our runaway housing market has solidified New Zealand as a country divided by property wealth. If you don’t have a foot on the property ladder, the dream of owning your own home is becoming increasingly unlikely. At present, the average house price is more than 12 times the average national income, Rasmussen said.

We asked New Zealanders what their biggest concerns are at present, and from both a national and financial perspective, the answer was housing. Regardless of whether you own a home or are renting, New Zealanders are deeply concerned about the state of housing.

Renters are often living in mouldy homes, with inadequate heating, and pay about 30 per cent of their income on rent, Rasmussen told Midday Report. It’s not about how much money you earn, you’re sort of in or you’re out, and if you don’t have family assistance or a really high salary it’s making it really tricky for you.

On the opposite side, people who own homes are getting richer. The divide exacerbates poverty cycles, Rasmussen said.

I think we’re going to see two New Zealands. We are going to see New Zealanders who are enjoying the capital gains of the houses which they live in, they’re going to be able to accumulate more housing and there’s going to be a smaller population of New Zealand who are owning a home and owning investment properties.

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