Youth voice – Housing insecurity in our future

The phenomenon ‘dream scrolling’, where individuals spend hours browsing property listings, reflects a longing for homeownership. Owning a home is most certainly still a big kiwi dream! But how accessible is it in cities like Auckland?

The Auckland Plan 2050 report indicates some improvement in housing affordability, with the median house price to median household income ratio decreasing from 10.8 during the pandemic in 2021 to 7.5 in 2024. Auckland is still classified as ‘severely unaffordable’ by Demographia’s latest housing affordability index.

On the one hand, anecdotally, I am hearing of a few friends in their mid-twenties who are landing homes. This brings hope! However, the reality for many is that without financial assistance from the ‘Bank of Mum and Dad’, or higher incomes, many members of Generation Z will find themselves trapped in the rental market. We are seeing fewer young kiwis owning homes than their parents’ and grandparents’ generations. Deloitte’s recent home ownership report found less than 60 per cent of New Zealanders own their home and the trend shows ownership rates will continue to decline. 

For some, you may be asking why should we care? Well, home ownership leads to greater social and financial benefits. These include better stability, stronger communities, a rent-free retirement and the opportunity to build intergenerational wealth. Personally, growing up on the Coast in the same house has undeniably given me a great sense of belonging and strong connection to my community.

But what can be done? There is no silver bullet for what is a complex challenge. However, we can get creative about different options to help the younger generation into home ownership. This includes a continued focus of looking into shared equity, rent-to-own properties, and increasing housing supply (just not on the Gulf Harbour golf course though) as ways to help break down the barriers to achieving this kiwi dream.

For Gen Z, maintaining a motivated mindset is necessary amid these challenges. It’s essential to adopt prudent budgeting and saving habits. Although the temptation to indulge in small luxuries during tough times – known as the “lipstick effect” – may be strong, focusing on long-term financial health is important. Every small step towards saving can lead to significant benefits down the road. 

Finally, let us not forget the most vulnerable in our community. Those who are sleeping rough, and left with very few options. Their struggles highlight the need for comprehensive community solutions to address housing insecurity for all kiwis. While the path to affordable housing is not as simple as times gone by, innovative thinking, and good habits can create a more accessible future.