OneRoof commissioned data insights firm Kantar to poll Kiwis on their attitudes to house prices in New Zealand. Five questions were asked, covering how Kiwis perceive house prices right now, what they think about the future of the market and whether or not they think the Government should try to bring down prices.
The survey of just over 1,000 Kiwis around the country was run in October.
According to the results, the majority of New Zealanders perceive current house prices to be too high. This perception is particularly strong among those living in the major cities – Auckland and Wellington - and indicatively among the younger demographic. Further to this, most New Zealanders are not optimistic about the future of the housing market, believing affordability will worsen in the next two to three years.
More than two-thirds of New Zealanders currently own a house in New Zealand, although this is skewed towards those aged 40-plus and those living outside of Auckland. Among homeowners, confidence in the ability to purchase another house at the current prices if their current house is sold is divided. Around a quarter currently sit at each end of the confidence scale and the other half of homeowners sit in the middle.
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New Zealanders place responsibility for increased house prices on property investors and overseas buyers, although both the current Labour Government and previous National Government are also seen as responsible.
And just over two in five New Zealanders agree that the Government should forcibly reduce house prices to pre-Covid levels. Strong agreement skews higher among non-homeowners, younger Kiwis and those with a household annual income of $50,000-$100,000.
The results
1. Just over 80% of New Zealanders perceive house prices to be too high, with age and region playing a significant role.
Respondents aged 60-plus are significantly more likely to think house prices are “about right” (16%), while those aged 18-39 years are indicatively more likely to say they are “much too high” (67%).
Those living in Auckland and Wellington are significantly more likely to perceive house prices being much too high (68% and 77% respectively), while those in Canterbury are significantly less likely to feel this way (50%). Those living in other North Island regions perceive prices to be slightly too high (26%).
2. The majority of respondents are not optimistic that the housing market will become more affordable in the next two to three years, with just over two-thirds of New Zealanders saying affordability will worsen.
Those aged 60-plus are significantly more likely to perceive the housing market will slightly improve (19%) over the next two to three years and less likely to say it will significantly worsen (26%).
40% of respondents with a household annual income of $50,000-$100,000 think affordability will significantly worsen.
There is no significant gender or regional trends within the results to this question.
3. Among current homeowners, confidence in being able to purchase another house at the current prices is divided, with half currently sitting in the middle.
Just over two-thirds of people in New Zealand currently own a house in the country. This is largely skewed towards those who are aged 40-plus, have high personal and household annual incomes ($100,000 and above) and those living in the North Island (excluding Auckland and Wellington). Homeowners are significantly less likely to be living in Auckland.
Those who say they are very confident of being able to purchase another house at current prices skew towards males, those living in Canterbury and those who have high personal and household annual income ($100,000 and above).
4. Most New Zealanders place the responsibility for increased house prices on property investors and overseas buyers.
The younger demographic (18-29) are significantly more likely to place responsibility on property investors (68%) and the current Labour Government (43%), similarly those aged 30-39 (43%). Those aged 40-49 are significantly less likely to say the Labour Government (28%) while those aged 60-plus are less likely to say the previous National government (18%).
Men are significantly more likely to place the responsibility on both the current Government (43%) and previous National government (28%) , and also first home buyers (6%).
Aucklanders are significantly more likely to place the responsibility on banks (26%).
5. More New Zealanders agree that the Government should try to forcibly bring house prices down to pre-Covid levels. Agreement skews towards younger New Zealanders, those with low to average annual household income and non-homeowners.
New Zealanders aged 18-39 are significantly more likely to strongly agree (29%) while those aged 50-plus are less likely to strongly agree (15%).
Males lean towards strongly disagreeing (23%).
New Zealanders with a household annual income of $50,000-$100,000 are more likely to strongly agree (26%), while high personal and household annual income earners ($100,000) are likely to strongly disagree (33% and 26% respectively).
Homeowners are significantly more likely to disagree (strongly and slightly disagree - 39%) while those who don’t currently own a house are significantly more likely to strongly agree (38%).
Notes about the poll:
The OneRoof–Kantar Housing Survey 2021 was taken between Wednesday, October 20, and Wednesday, October 27, using the ConsumerLink Flybuys panel in New Zealand, which has more than 100,000 active members. Sampling was nationally representative, and then was post-weighted by age, gender and region to ensure it matched the underlying population as published by Statistics New Zealand. Only those aged 18-plus were included. The sample size was n=1,001 and the maximum margin of error for total sample (at 95% confidence level) was plus or minus 3.1%.
