• New Zealanders’ housing-related debt is near record levels prompting warnings of a risk to the economy.

Housing dominates New Zealanders’ wealth and debt, and the overheated market is a key driver of the economy.

At the end of May, households owed $220 billion in housing-related debt, which is near record highs at 88 percent of annual economic output, or GDP.

The market value of the country’s housing stock had grown to $905bn, or more than three-and-a-half times that of GDP.

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Risk

People are feeling wealthy because their houses are said to be worth a lot more, said BERL chief economist Ganesh Nana. Photo: 123RF