A report out by CHRANZ indicates that high prices, as well as social factors have influenced the decline in home ownership in New Zealand over the last few decades.
Home ownership in New Zealand peaked in the 1980s at 73.7 percent, but had fallen to 66 percent by the time of the 2006 census, while the drop in home ownership among the young has occurred in all English-speaking countries the report indicates New Zealand is unusual in not maintaining overall home ownership rates reached in the 1980s.
One of the most telling findings which indicates that housing affordability has played a significant part in declining home ownership, is that home ownership used to be higher in cities than in rural areas and small towns - a situation which has now been reversed, thanks to the increasing cost of urban real estate relative to wage rates.
Arguably the most worrying thing about declining home ownership, is that younger generations aren't saving much either, so those who are unable to save for a home are likely to be worse off than their parents in the future.
Given that neither National or Labour have any serious proposals for addressing the problem in the short term, those who are unable to afford get on the property ladder will have to hope that the coming decline in property prices provides more affordable housing without ushering in a new age of high interest rates and economic stagnation.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment