Homeownership has plummeted to its lowest rate since 1951

Homeownership has plummeted to its lowest rate since 1951, with a new report finding rental houses are more likely to be damp and mouldy, leading to serious physical and mental health effects.

On Tuesday, Stats NZ released its new Housing in Aotearoa report which paints a grim picture of living conditions in New Zealand.

The report found “considerable disparities” in homeownership with young people far less likely to own their own home and Māori and Pacific peoples less likely than other groups to own a home.

By 2018, just over 1.4 million people lived in houses they didn’t own, including 120,000 children under five years old. Also, almost one-third of renters aged 65 and over lived in social housing.

Homeownership has plummeted to its lowest rate since 1951, and the quality of rental properties leaves a lot to be desired.

StatsNZ says homeownership rates have fallen for all age groups since the early 1990s, but particularly those in their 20s and 30s.

For example, in 1991, 61 percent of those agred between 25 and 29 lived in an owner-occupied home. But this had dropped to 44 percent by 2018. For those in their 30s, the rate dropped from 79 percent to 59 percent.

“Homeownership rates for younger people have seen significant falls since the 1990s; however, ownership rates for those aged 60 years and over have only fallen slightly,” said lead author Dr Rosemary Goodyear said.