The second Kiwibank State of Home Ownership report showed 85 percent of respondents agreed home ownership was at the core of what it called the “Kiwi Dream”, unchanged from the 2024 report.
Confidence in achieving that was improving, but 57 percent still felt locked out of the market, and 46 percent of non-owners said they had “given up hope” of their own house.
Kiwibank chief executive Steve Jurkovich said the survey showed that home ownership was core to the New Zealand identity, and there was a resilience and determination to get on the property ladder.
“While optimism about getting on the ladder has lifted, many Kiwi still feel locked out. Yet, true to Kiwi spirit, they’re willing to adapt and compromise to achieve their dream of home ownership.”
Barriers to ownership
The main difficulties in getting on the ladder were named as the cost of living, high house prices, and difficulty in saving a deposit .
Jurkovich said the survey showed would-be owners being more adaptable in finding ways to buy a property.
“That includes exploring non-traditional pathways like co-ownership … or relocating to a different region.”
Other options included buying a smaller house, moving in with family and friends to save money, and going overseas.
Younger age groups — 18-29 year olds (Gen Z) and those between 30 and 44 (millennials) — were the most eager to buy a house and the most confident of eventually doing so.
Jurkovich said once people had bought a house they were determined to pay off the mortgage, with a third saying they were in better financial shape than a year ago and 82 percent saying it was their top priority.
“Around 40 percent of our fixed-rate home loan customers are making extra payments each month, putting them on track to clear their loans sooner. It’s a strong signal of Kiwi commitment to financial security.”
He said lower interest rates and the easing in the loan to value ratios should benefit would-be home buyers.
