Ethic of home ownership alive and well

The fact that fewer New Zealanders own their own homes has more to do with inability to afford a home and lack of job security than it does with any wish not to own one, a Massey University survey has found.

The survey of 350 people renting their homes aimed to identify the motives and circumstances of those renting rather than owning property.

New Zealand led the world in the home ownership stakes in 1986 when 73.7% of us owned our own homes. Now only 66% of us own their own homes.

The survey found 60% of those surveyed plan to own their own homes and that of those people, 30% aim to own within three years.

About 62% cited a lack of job security as the main employment-related reason why they didn’t own a home while another 44% said they were unable to save a deposit because of insufficient income. A further 27% said they need to clear existing debt first.

Overall, 71% said their reasons for not buying were financial while other reasons such as career and lifestyle scored less than 15% each.

Labour market changes, including downsizing and global competition, and shorter worker contracts were a major factor driving the trend to renting. Social changes such as families forming later and delaying marriage and children as well as the greater number of solo parents and single person households were another factor.

The survey found that 43% of respondents agree or strongly agree that buying a house is a priority and 60% of respondents disagree or strongly disagree with the proposition that home ownership would tie them down.

The Real Estate Institute helped fund the research. Its president, Rex Hadley, says he welcomes the findings because "although they paint a rather sad picture for some of those renting because of economic necessity, they also confirm that the ethic of home ownership is alive and well."

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