PHOTO: According to Westpac, in broad terms, “lower migration means that we’ll need fewer houses than would have otherwise been the case” and there will also be less pressure on rents.”
The closure of New Zealand’s borders due to the COVID-19 pandemic has caused the surge of migration inflows to come to a halt – and this could have big implications on the country’s housing and construction sectors.
According to Westpac’s latest economic commentary, falling migration numbers will negatively impact consumer spending, and ultimately slow down demand in the housing market
“Rapid population growth on the back of high levels of net migration played a key role in shaping New Zealand’s economic fortunes in recent years,” Westpac said. “However, following the outbreak of Covid-19, the inflow of people into the country has come to an abrupt halt.”
While the start of the year saw population growth surge as large Kiwis living abroad returned to the country as the pandemic spread across the world, that number quickly to just one-third of normal levels.
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