Is the home ownership dream dead?

2 min read
19 August, 2021

It's the Kiwi dream: to one day own a place to call our own. But is that dream no longer alive? The FSC's latest research report, 'Money and You: Generation Rent', shows younger Kiwis are still keen to buy property, but that their dream is becoming increasingly out of reach. 

Who are 'Generation Rent'?

The FSC's reseach report defines Generation Renters as those aged 18-39. Kiwis in this age bracket number about 1.5 million. Of that 1.5 million, 40% already own a home, meaning that 60%, or approximately 916,000 young Kiwis, do not. 


What did the research find?

The home ownership dream is still alive

Despite the challenges of a global pandemic and ever-increasing house prices, younger Kiwis still want to buy their own home.

  • 83% of Gen Renters surveyed still think owning a home is a ticket to long-term financial security.
  • 55% are working towards buying their first home in the next 5 years.

Home ownership is becoming harder

While the dream is still alive, it's becoming harder to reach.

  • 82% of those surveyed - of all age groups - believe that the dream of home ownership is now unattainable for the average Kiwi.
  • Almost 90% of those surveyed across all age groups believe younger Kiwis are being locked out of the property market.
  • Affordability of the housing market is the biggest barrier for gen Renters, followed closely by saving for a deposit.

Sacrifices are being made

Younger Kiwis are pulling out all the stops in efforts to save for their first home. Some of the strategies they're using include:

  • cutting back on lifestyle expenses;
  • delaying starting or growing a family;
  • moving in or staying with family;
  • working overtime;
  • asking family and friends for financial assistance;
  • buying jointly with a partner, friends or family;
  • and more.

Engage with the research

You can read the full research report here.

The FSC also held a webinar with a panel of experts, who talked about the challenges facing young Kiwis and whether renting is really all that bad anyway. 

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