Index shows more non‑owners believe buying is achievable
New research from Kiwibank suggests New Zealanders remain strongly committed to homeownership, even as cost‑of‑living and deposit pressures persist – a backdrop that keeps mortgage advisers central to the path onto, and up, the property ladder.
Kiwibank’s latest State of Home Ownership Index shows 85% of New Zealanders still see homeownership as being at the heart of the “Kiwi dream”. Nearly half of non‑homeowners (43%) believe buying a home is more achievable than last year, up 7% year‑on‑year.
Kiwibank chief executive Steve Jurkovich (pictured) said that resilience is striking given recent conditions.
“We know buying a home isn’t always easy, especially over the past couple of years with rising living costs and higher interest rates. But we’re seeing incredible resilience from Kiwi who are determined to get on the ladder,” Jurkovich said in a media release.
ASB’s latest Housing Confidence Survey backs this up, showing buyers see conditions as the most favourable in 15 years, even though expectations for further rate cuts and strong price growth have both moderated.
Home seen as crucial to 'getting ahead'
The index highlights how strongly New Zealanders still connect homeownership with long‑term financial security:
- 67% agree that owning a home is crucial to getting ahead (up 1 percentage point).
- Agreement is higher among homeowners (72%) than non‑owners (56%).
- Younger generations are particularly emphatic, with 69% of Millennials and 68% of Gen Z agreeing.
Motivations among non‑owners are anchored in stability and control:
- 88% want the independence of having their own space.
- 85% seek improved quality of life.
- 80% want more stability and control over their living situation.
Barriers remain high, but optimism and adaptability are rising
The Kiwibank survey shows meaningful, but not overwhelming, improvement in perceived access.
- 57% of non‑owners still feel locked out of the market – but that’s an improvement of six percentage points.
- The biggest obstacles remain:
- cost of living (60%, up 2%)
- high house prices (57%, down 2%)
- saving for a deposit (45%, up 1%)
Jurkovich said many New Zealanders are ready to compromise to reach their goal.
“While optimism about getting on the ladder has lifted, many Kiwi still feel locked out," he said. "Yet, true to Kiwi spirit, they’re willing to adapt and compromise to achieve their dream of homeownership. That includes exploring non-traditional pathways like co-ownership (36%) or relocating to a different region (45%).”
Adaptability is a clear theme:
- 70% would cut expenses to buy sooner (up 3%).
- 58% would accept a smaller home (up 2%).
Advisers and banks key to growing confidence
Jurkovich said confidence in the home‑buying process is improving, and advisers and banks are central to that.
“What’s great to see is that more Kiwi feel confident about the home buying process, with mortgage advisers and banks being the most common sources of guidance," he said. "That’s exactly what we’re here for – having great conversations and helping you every step of the way, from saving for a deposit to finding a way to get you on the ladder.”
Existing homeowners doubling down on repayment
The index also shows strong intent among existing homeowners to reduce debt faster.
“Beyond first-home buyers, homeowners are showing real determination," Jurkovich said. "82% say paying off their mortgage quickly is their top priority — and we’re seeing that in action. Around 40% of our fixed-rate home loan customers are making extra payments each month, putting them on track to clear their loans sooner. It’s a strong signal of Kiwi commitment to financial security.”
Looking ahead: Rate cuts and LVR changes to open more doors
Jurkovich said macro settings should become marginally more supportive for buyers.
“As we look ahead, lower interest rates and recent loan-to-value ratio changes are expected to open up more opportunities for home buyers.”
Combined with the sentiment shift – 43% of non‑owners now seeing homeownership as more achievable than a year ago – that macro tailwind positions advisers to play a bigger role in turning intent into action.
For mortgage adviser, Kiwibank’s State of Home Ownership Index points to three clear themes:
- The dream is very much alive – demand from first‑home buyers remains strong, but highly price‑ and deposit‑sensitive.
- Borrowers are more willing to adapt – considering co‑ownership, regional moves and smaller homes – if guided through the options.
- Existing homeowners are focused on paying down debt – creating ongoing review and restructuring opportunities as rates ease and LVR settings adjust.
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