18 Nov 2010

Home ownership getting harder in auckland - report

10:32 pm on 18 November 2010

A new forecast says only half the population will own their own home in about 20 years.

One of the researchers says in some parts of Auckland, more than 50% of children live in rental accommodation.

The projections come in two new reports commissioned by the Centre for Housing Research, Aotearoa New Zealand, a think tank supported by the Government and Auckland local authorities.

Researcher Kay Saville Smith says home ownership rates slipped from 74% in the early 1990s to 67% in the 2006 census.

She says the fall off in house ownership has continued since then.

One of the reports shows conditions are especially onerous for families in Auckland rental accommodation who earn too much to qualify for a state house, but not enough to get a mortgage from a bank.

This group, known as the intermediate housing market, increased 110% between 1996 - 2009, and is forecast to rise a further 85% by 2026.

The paper says housing affordability improved between 2006 - 2009, but not enough to offset earlier trends, when house prices rose much faster than wages.

It also looks at rental problems and says half of all private sector renters are financially stressed.