One in five NZers spending half their income on housing

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GHD NZ chief economist David Norman said the report found Kiwis had an expectation the government should help address problems in the housing market.
Photo: RNZ / Nate McKinnon

New research shows almost one-in-five New Zealanders are spending more than 50 percent of their household income on rent or a mortgage, more than in other countries.

The report – from global infrastructure firm GHD – was conducted across 10 countries, surveying more than 13,000 people from different age brackets.

It said 17 percent of New Zealanders surveyed spent more than half of their income on rents or mortgages, compared to 11 percent spent by other countries.

GHD NZ chief economist David Norman said the report also found residents here had an expectation the government should help address problems in the housing market.

He said the report research underpinned an urgent need for more strategic land use and infrastructure decisions, which he said were needed to make communities stronger and housing more affordable for future generations.

“New Zealanders want to live in communities with good transport connections, where it is easy to get to work and be part of a strong community.

“To get there, we need an approach to land zoning and pricing that reflects the true cost of infrastructure, which would naturally direct growth into existing brownfield locations and unlock land to deliver more affordable housing at scale.”