Youth Voice – Piece of pavlova out of sight

The phrase ‘quarter acre pavlova paradise’ takes me back to the stories my dad tells me of the 1970s; a time where New Zealand was the land of milk and honey for housing affordability. 

There is no doubt, the Coast is its own piece of pavlova paradise. With an abundance of beaches, the desire to settle in this cruisy coastal town is strong. However, in today’s climate with the increased cost of living and exorbitant house prices, home ownership anywhere in Auckland can seem like a distant dream to the younger generation. 

The proportion of young adults aged 25-34 years who are homeowners has declined nationally, from almost two-thirds in 1988 to just over a third in 2018 (this is without zooming in on the Auckland context). Furthermore, houses cost about two times the median household income in the 1970s. They now cost roughly seven times the median income across the country and in Auckland, it is times 10!

To capture the mindset of Generation Zers, I asked a few friends based on the Coast to share their experience of renting and accessibility to home ownership. For all, the Coast lifestyle is a major drawcard. The beaches, the shops and public amenities get a big tick – to the extent that they are willing to make sacrifices, such as sitting in traffic, to enjoy the coastal life. 

For some, it’s not so positive and the cost of renting takes its toll. One friend says “it isn’t feasible to stay long term as the availability of affordable accommodation for couples or young families is just not there. Stand-alone properties are far too expensive.” Ohers have made the decision to live with their parents and save for a house of their own.

On the other hand, a small minority of the younger population have successfully made it onto the property ladder. One friend shared a few hacks to make it a bit more achievable. They teamed up with their brother to go halves, found a private seller which was easier to negotiate with, avoided real estate fees and found a good mortgage broker! To be in this position in today’s climate, undoubtedly requires significant sacrifice and delayed gratification. There is also the increasing popularity of friends teaming up to get on the property ladder which shows a bit of creative thinking! For some, the goal just feels too distant so they have shifted priorities to overseas travel and parked the idea of owning a home in Auckland. 

While house prices are predicted to continue to fall, it seems like it won’t be nearly enough to alter the trajectory of Gen Zers who have been dubbed ‘the generation of renters’. 

A small slither of pavlova paradise is not out of sight, but it is definitely not the quarter acre paradise of old, and is likely to take many years of saving, support, sacrifice and strategising. It is a privilege to call the Coast home and one can hope that this home becomes more accessible to the younger generation.