State of the Nation 2025 shows serious challenges and falling living standards across New Zealand
New Zealand is backsliding on many areas of social progress, making life harder for people and their whānau across the motu, according to The Salvation Army’s State of the Nation 2025 report, titled Kai, Kāinga, Whānau, The Basics—Food, a Home, Family.
“Our country needs to do better for people and our report seeks to understand what is happening,” says Dr Bonnie Robinson, director of the Social Policy and Parliamentary Unit at The Salvation Army.
“This year we can find few areas of improvement, and, in many cases, indicators have worsened, making it harder for people to have what they need in terms of kai, kāinga and whānau.”
The 18th edition of the report pulls together existing data to provide an annual snapshot of our social progress as a nation. Specific areas covered: Children and Youth, Work and Incomes, Housing, Crime and Punishment and Social Hazards. Another section titled Māori Wellbeing uses He Ara Waiora wellbeing framework to look at how each area specifically impacts tangata whenua.
Key findings in the report include rising unemployment, with more than 400,000 people needing welfare support in December 2024—the highest number since the 1990s. Food insecurity among families with children has also risen sharply, with half of all Pacific children reported as going without food often or sometimes.
The State of the Nation 2025 report also highlights that while there has been an increase in the number of social housing units available, the pace of new builds is decreasing, and there are rising numbers of people who are homeless. Rent for private rentals continues to be unaffordable for many on low incomes.
Aotearoa New Zealand’s prison population has also grown, remaining high compared to other developed nations.
Dr Robinson says of the report: “We can’t wish away the increasing levels of poverty and deprivation that this report is highlighting, but we can prioritise addressing the basic needs of people so that our whānau go beyond barely surviving to seeing them thrive. We need an economy that ensures all people have the basics and one that puts people first.”
Key findings in the report include:
Māori Wellbeing
Large decline in the proportion of Māori who feel it is easy to express their identity (75% in 2023/24, down from 84% in 2018).
Māori are almost seven times more likely to be imprisoned. The reimprisonment rate and overall imprisonment rates are rising, with a much harder impact on Māori.
There are fewer tamariki Māori in state care, as iwi and community-based alternatives increase.
Children and Youth
Violence against children is rising, with the number of children hospitalised from assault and neglect in 2024 to the highest in 10 years.
One in six students left school with no recognised qualification (less than NCEA Level 1) in 2023 (the most recent figures available), the highest level since 2013.
Housing
Emergency Housing numbers plummeted, from 4000 in September 2023 down to 1400 in September 2024, and below 500 by December 2024. But homelessness is rising; for example, Downtown Community Ministries (DCM) Wellington reported an increase from 330 to 464 in the number of people they are working with.
Four out of every 10 communities have high rental unaffordability (over 30% median income), hitting those on low incomes hardest.
The number of social housing units increased by 4500 in 2024, helping to reduce the number of people waiting for social housing. The social housing waitlist has shrunk by more than 5000 to 20,300 at the end of December 2024. About 25,300 people were on the waitlist in September and December 2023.
There are 4000 fewer new housing consents than we estimate is needed to match population growth.
The median house price in December 2024 was $775,000—largely unchanged from 2023, but still out of reach for those on lower incomes, and around seven times the national median income.
Crime and Punishment
About 32% of Aotearoa’s population—roughly one in three people—are victims of crime.
Family violence has seen a slight decline, with 2700 fewer family harm incidents reported by the police.
There are almost 10,000 people in prison, with almost 27% on remand awaiting court.
Social Hazards
More than $2.76 billion was lost to gambling in 2023.
Hazardous drinking has increased slightly—one in six people are now drinking in a way that is dangerous to themselves and others.
Methamphetamine use doubled in September 2024, used by 1.3% of the population, and is the most harmful illicit drug, causing over $1 billion in social harm costs annually.
Household debt is down overall, but arrears were the highest for five years.
KiwiSaver withdrawals for hardship are up by 58% in the past year.
Work and Incomes
Record numbers of people need welfare support, with over 400,000 in December 2024.
Food insecurity among families with children rose sharply in 2024, and half of Pacific children go without food often or sometimes.
Unemployment continued to rise during 2024 by 30,000, as the number of people employed decreased.
Pacific and Māori workers bear an unequal burden, with unemployment rates two- to three-times higher than other population groups.
The Salvation Army distributed fewer parcels in 2024 (84,000) compared with 2023, but also had fewer resources as food support funding from government was reduced.
The full report can be found at: https://www.salvationarmy.org.nz/sotn2025