Current State Of Housing In Aotearoa New Zealand

Housing in New Zealand's cities is changing, with an increase in housing density, and more multi-unit homes. Home ownership has increased, however housing affordability is still an issue for many households, according to a report released by Stats NZ today.

Housing in Aotearoa New Zealand: 2025 brings together information from official and government administrative statistics to describe how housing intersects with people. It is an update of Housing in Aotearoa: 2020 and has updates to time series and new data sources, including aspects of housing not previously covered.

In the June 2024 year, the average annual housing costs for a New Zealand household increased 31 percent, compared with the June 2020 year, while average disposable income increased 24 percent over the same period.

"Financial strain of high housing costs can mean households cannot afford housing that meets their needs, therefore affecting their wellbeing and the wellbeing of their families," 2023 Census spokesperson Dr Rosemary Goodyear said.

People who rated their housing very unaffordable had lower life satisfaction (at a mean life satisfaction of 6.9 out of 10) than those who rated their housing very affordable (8.2 out of 10).

Housing affordability differs by tenure

When measuring housing affordability, tenure - whether a household pays rent, owns their house with a mortgage, or owns it outright - is a key factor in the differences seen.

Non-owner-occupied households generally spend a higher proportion of their income on housing costs than owner-occupiers. A high housing-cost-to-income ratio suggests that a larger proportion of income is spent on housing costs, and can indicate financial stress.

In the year ended June 2024, 45.9 percent of non-owner-occupiers spent 30 percent or more of their income on housing, compared with 26.6 percent of owner-occupiers.

Around two-thirds of non-owner-occupier Māori and Pacific households spent 30 percent or more of their income on housing costs (64.1 percent and 69.9 percent, respectively).

According to the Organisation for Economic Co-operation and Development, spending 30 percent or more of household disposable income on housing is often considered unaffordable, while spending 40 percent or more is considered an overburden.

"In the June 2024 year, about 1 in 4 households that did not own their dwelling spent more than 40 percent of their income on housing costs, compared with 1 in 7 home-owning households," Goodyear said.

Housing affordability can also be measured by comparing income to house prices. An increasing house-price-to-income ratio indicates that houses are becoming less affordable.

Between 2020 and 2024, house prices relative to incomes improved in many regions, but Auckland remains the least affordable.

Heating impacts rates of dampness and mould

Heating can have a big impact on the rates of dampness and mould, especially during the colder months. Dampness was least common in dwellings where heat pumps and fixed gas heaters were used.

A sharp increase in heat pumps in non-owner-occupied housing since 2018 reflects the impact of Healthy homes standards. The use of heat pumps in non-owner-occupied homes increased from 38.0 percent in 2018 to 67.2 percent in 2023.

"By 2023, heat pumps were just as likely to be used in non-owner-occupied homes as in owner-occupied homes," Goodyear said.

"Of households who rented their home, the increased use of heat pumps was particularly large for those in social housing rentals."

The use of heat pumps in households renting from a private person, trust, or business increased from 38.9 percent in 2018 to 67.3 percent in 2023. There was an even bigger increase in social housing households - from 26.9 percent in 2018 to 74.0 percent in 2023.

Those renting from Kāinga Ora were the most likely to use a heat pump, at 76.2 percent in 2023.

The 2023 Census data shows fewer homes had dampness and mould compared with 2018, reflecting the increased use of better heating such as heat pumps. This improvement is likely to have positive effects on individuals' and households' health and wellbeing.

Text alternative for Average number of private dwellings per square kilometre by territorial authority and Auckland local board area, 2023

Map shows the average number of private dwellings per square kilometre for the 2023 Census, by territorial authority and Auckland local board. There are six colour-coded categories grouped from highest values in the darkest colour to lowest values in the lightest colour. Categories are 1000.0 or more; 400.0 to 999.9; 15.0 to 399.9; 5.0 to 14.9; 2.0 to 4.9; and less than 2.0 private dwellings per square kilometre.

• Areas where the housing density is 1,000 private dwellings or more per square kilometre are: Waitematā Local Board area; Albert-Eden Local Board area; Devonport-Takapuna Local Board area; Whau Local Board area; Ōrākei Local Board area; Puketāpapa Local Board area.
• Areas where the housing density is 400.0 to 999.9 private dwellings per square kilometre are: Kaipātiki Local Board area; Henderson-Massey Local Board area; Maungakiekie-Tāmaki Local Board area; Manurewa Local Board area; Howick Local Board area; Ōtara-Papatoetoe Local Board area; Hamilton City; Papakura Local Board area; Tauranga City; Hibiscus and Bays Local Board area.
• Areas where the housing density is 15.0 to 399.9 private dwellings per square kilometre are: Māngere-Ōtāhuhu Local Board area; Upper Harbour Local Board area; Wellington City; Napier City; Kawerau District; Christchurch City; Porirua City; Lower Hutt City; Palmerston North City; Waitākere Ranges Local Board area; Invercargill City; Nelson City; Waiheke Local Board area; Kapiti Coast District; Upper Hutt City; Franklin Local Board area; Dunedin City; New Plymouth District; Horowhenua District; Waipa District; Whangarei District.
• Areas where the housing density is 5.0 to 14.9 private dwellings per square kilometre are: Rodney Local Board area; Western Bay of Plenty District; Waimakariri District; Rotorua District; Thames-Coromandel District; Matamata-Piako District; Whanganui District; Timaru District; Hauraki District; Waikato District; Hastings District; South Waikato District; Masterton District; Manawatu District.
• Areas where the housing density is 2.0 to 4.9 private dwellings per square kilometre are: Far North District; Gore District; Selwyn District; Kaipara District; Aotea/Great Barrier Local Board area; Carterton District; South Taranaki District; Whakatane District; Taupo District; Area Outside Territorial Authority; Queenstown-Lakes District; South Wairarapa District; Tasman District; Ashburton District; Gisborne District; Marlborough District; Ōtorohanga District; Stratford District; Central Hawke's Bay District; Grey District.
• Areas where the housing density is less than 2.0 private dwellings per square kilometre are: Tararua District; Waitaki District; Ōpōtiki District; Rangitikei District; Clutha District; Kaikoura District; Waitomo District; Central Otago District; Waimate District; Ruapehu District; Wairoa District; Buller District; Hurunui District; Mackenzie District; Southland District; Chatham Islands Territory; Westland District.