Kiwibank's 'State of Home Ownership' report reveals new pathways to homeownership needed to help more New Zealanders achieve the Kiwi Dream

Kiwibank’s State of Home Ownership report shows that the overwhelming majority (85%) of New Zealanders want to own their home, yet nearly one-third (32%) of non-homeowners do not believe they will be able to achieve it.  

“Navigating the path to homeownership can feel overwhelming, yet it remains the quintessential goal for many Kiwi, offering not just a roof over their heads but security and stability for themselves and their families,” says Steve Jurkovich, Chief Executive of Kiwibank.  

"While the landscape has evolved – challenges such as rising interest rates, living costs, and fluctuating house prices – innovative solutions are paving the way for Kiwi to carve out their unique journeys toward homeownership. The research provides useful insights into the current state of home ownership in New Zealand and aims to help identify how we can help more Kiwi overcome any barriers.” 

Millennials Most Impacted by the Housing Market Lockout  

While Kiwi across all generations still aspire to own a home, almost two-thirds (63%) of non-homeowners feel locked out of the market, with Millennials (70%) surpassing Gen X (63%), Gen Z (59%), and Boomers (57%).   

The main barriers preventing non-homeowning Kiwi from stepping onto the property ladder are high house prices (59%) and the rising cost of living (58%). Many also struggle to save for a deposit (44%), while high interest rates (35%) and low wages (33%) compound the difficulties of purchasing a first home. 

A Knowledge Gap That Needs Closing 

Almost half of non-homeowning Kiwi (48%) are open to exploring innovative and alternative pathways to homeownership. Helping New Zealanders to understand the contemporary options available to them is critical to helping more Kiwi achieve their goal. 

Awareness of alternative options varies. While two-thirds of Kiwi (68%) said they were familiar with rent-to-own schemes, about half (47%) with co-ownership, and under half with community housing (45%) and cross-leases (41%) - the appeal of these models differs.    

Rent-to-own emerged as the most attractive option (66%), followed by co-ownership (44%), community housing (33%), and cross-leasing (31%).   

Modern Thinking: New Routes to Home Ownership 

While traditional home ownership pathways remain challenging due to several factors including supply, property prices and interest rates, Kiwi are becoming more open to creative solutions to getting on the ladder with most New Zealanders (76%) believing that we need to think differently about home ownership options in New Zealand.  

Notably, the majority of those (81%) in the market for a first home agree we need to think differently.  

Of the Kiwi open to consider options such as co-ownership, the most appealing factors included shared expenses (45%), the ability to use it as a steppingstone (40%), and entering the market earlier (36%).  

Kiwibank is committed to highlighting new routes and exploring home ownership options with customers so that no one feels locked out. Co-own is a way to buy a home that allows customers to combine savings with friends or family to get on the property ladder sooner. 

“It [Co-own] captures the essence of what Kiwi want to do, which is to help each other get ahead, whether it’s getting together with friends to pay a mortgage rather than rent, or parents helping their children to get on the property ladder. For many, it’s also a stepping-stone to sole ownership once the mortgage is paid off or the house is sold,” says Mr Jurkovich. 

With two-thirds of Kiwi (66%) stating that home ownership is critical for getting ahead, the report underscores the urgent need for greater awareness of alternative routes. To help bridge this gap, Kiwibank has launched an eight-part series called ‘On the Ladder’ in collaboration with Warner Bros Discovery. The show is designed to educate and inspire Kiwi with practical tips and tools to make the ambition of home ownership a reality.   

“For Kiwibank, it’s about living up to our Purpose of Kiwi making Kiwi better off and helping our customers to understand that there are different ways to own and that we can be flexible in how we help them get there.”