Pressure of Housing Costs Mounts for New Zealand Households
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Synopsis
Nearly 20% of New Zealand households allocated over 40% of their income to housing costs in June 2024, according to Stats NZ. This increase from 18.2% the previous year reflects the growing financial burden on families, despite a rise in average household income.
Key Takeaways
- 20% of households spent over 40% of their income on housing
- Average housing expenditure rose from 20.8 NZ dollars to 22.2 NZ dollars
- One-third of low-income households face similar pressures
- Average rent increased by 9% and mortgages by 8.7%
- 38.2% of households feel income is inadequate for daily needs
Wellington, Feb 20 (NationPress) Almost 20 percent of households in New Zealand allocated 40 percent or more of their earnings towards housing costs in the year concluding June 2024, an increase from 18.2 percent the prior year, as per data published by the statistics agency Stats NZ on Thursday.
During this timeframe, households spent an average of 22.2 NZ dollars for every 100 NZ dollars of income on housing, rising from 20.8 NZ dollars in 2019, as reported by Stats NZ.
One-third of low-income households in New Zealand devoted over 40 percent of their income to housing costs in the year ending June 2024. The agency highlighted that individuals are now spending a greater portion of their earnings on housing despite income increases.
"This situation adds extra strain on household budgets, alongside rising expenses for groceries and fuel during the same period," commented Chris Pooch, spokesperson for household financial statistics at Stats NZ.
The average annual equivalized disposable income for households (before accounting for housing costs) rose by 5.5 percent, while average weekly rent payments surged by 9 percent and weekly mortgage payments climbed by 8.7 percent between the years ending June 2023 and June 2024, as per the statistics.
Approximately 38.2 percent of households reported that their income was "not sufficient" or "barely sufficient" to cover their daily expenses, with this figure rising over the past two years, according to Xinhua news agency.
About 14.8 percent of households that own or partially own their homes spent over 40 percent of their disposable income on housing costs in the year ending June 2024, feeling heightened pressure from mortgage repayments, it noted.
