Perceptive survey reveals affordability woes as Kiwis delay first-home dreams
A new Perceptive survey has found that 72% of non-homeowners believe purchasing property in New Zealand is currently beyond their reach, underscoring ongoing affordability challenges.
Reflecting this sentiment, just 15% of non-homeowners plan to buy their first home or land to build on within the next year, the report, Pipe Dream or Possibility: Home Buying Intentions in 2025, found.
A separate LJ Hooker survey reinforces that desire for homeownership remains deeply rooted, with 81% of Kiwis saying they want to own a home and 84% viewing property as a solid investment. However, affordability barriers – cited by 97% as the biggest challenge – continue to hold many back.
Budgets and financing plans
Among first-home buyers planning to purchase in 2025, the average budget is $753,000.
Almost half (48%) of these buyers intend to arrange their finance or mortgage directly with a bank, while 44% will work with mortgage brokers.
Deposit savings goals and funding sources
Half (50%) of non-homeowners planning to buy in the future are already saving for a home deposit, with 54% aiming to save between $50,000 and $150,000. KiwiSaver (78%) and personal savings (66%) are the most common funding sources, while only 15% expect financial help from parents or family.
Lifestyle sacrifices to achieve homeownership
Eighty-four per cent of New Zealanders saving for a home deposit have made significant lifestyle compromises.
“The most common strategy involves cutting back on everyday spending, such as takeaways, groceries, and subscriptions,” the Perceptive report said.
Other sacrifices include delaying major purchases or life milestones (43%), reducing social activities (35%), and moving in with family or entering shared housing to lower rent (19%).
Property types and aspirations
Among those planning to purchase their first home, 51% are considering existing homes, while 15% are interested in new builds. Over a third remain undecided.
Standalone homes are the preferred option for 4 in 10 buyers. For those favouring new builds, 54% are interested in townhouses or apartments. Interestingly, 9% expect to buy a tiny house, almost matching the 10% aiming for an apartment.
Willingness to compromise
Many first-home buyers are prepared to make trade-offs, especially younger buyers under 34. The most common compromise is property size (71%), followed by location (45%), type of home (40%), and buying a property that requires work (33%), the Perceptive report found.
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