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Kiwi Households Adapting Despite Widespread Cost Pressure Concerns, Westpac Survey Shows
An increasing number of New Zealanders are changing their spending habits and behaviours in response to the Middle East conflict, according to new Westpac NZ research.
A nationally-representative survey of 530 people, conducted on research platform Ideally late last week, found 84% of people have adjusted their behaviour in response to the conflict – up from 74% when the same survey was conducted on 19 March.
Of those who have changed or are considering changing their behaviour in the next six months, 41% say they’re confident the changes will help them manage the impact of the conflict on their finances, compared to 24% who are unconfident. The remainder are either unsure or neither confident nor unconfident.
The survey also found more than three-quarters are worried about the impact of the conflict on their finances, with 44% somewhat concerned and 32% very concerned. That’s down from 42% who were very concerned in March.
Nearly two-thirds of Westpac’s home loan customers were more than three months ahead on their repayments at the end of March, up slightly on six months ago. The median customer was 10.6 months ahead.
“Rising prices are clearly weighing on New Zealanders’ minds, but what’s encouraging is they’re so far adapting well and making a plan to get through it,” says Westpac NZ CEO Catherine McGrath.
“Every household will be adjusting and making their own choices about which types of spending to prioritise, but our research shows some broad patterns.
“The most notable change between the two surveys is the increase in people cutting back on non-essential spending from 28% to 43%, while 51% are now driving less compared to 41% in March. More than a third (35%) now say they’ve changed how they shop for their groceries, up from 26% in March.
“We can see these actions showing up in our own data. For example, Westpac customers have reduced their card spend on the likes of clothing and restaurant meals to offset their higher fuel costs since the conflict began.
“We’re also helping both households and businesses reduce their long term energy costs. We’re seeing roughly double the volume of enquiries for EV lending through our interest-free Greater Choices[i] home loan top ups and our EV Personal Loan[ii] offering since the start of March.”
During the falling interest rate environment of 2024 and 2025, Westpac actively encouraged fixed home loan customers to continue repaying the same regular amount on their loan even as their minimum required repayments fell.
“As a result, nearly half our fixed home loan customers are paying above their minimum, compared to a third when interest rates peaked in 2024. These customers can choose to temporarily reduce their payment levels to help manage their costs if they need to.
“However, we know that the strain on many households will increase the longer the disruptions caused by the conflict drag on, and we’re monitoring this closely.
“If you’re at the point where you’re worried about how you’ll make ends meet, the best thing you can do is call your bank. The sooner we’re aware of potential issues, the sooner we can help you make a plan to get back on track.”
Survey Results (Note: Totals may not equal the sum of individual percentages due to rounding)
Which, if any, of the following changes have you made as a result of the Middle East conflict?
| 30 April | 19 March | |
| Driven my car less often | 51% | 41% |
| Reduced non-essential spending | 43% | 28% |
| Changed how I shop for groceries (e.g. fewer items, cheaper brands) | 35% | 26% |
| Delayed large purchases | 25% | 21% |
| Stocked up on fuel | 12% | 16% |
| Used public transport more often | 15% | 12% |
| Reviewed my KiwiSaver or investments | 13% | 11% |
| Changed, delayed or cancelled international travel plans | 14% | 11% |
| Changed, delayed or cancelled domestic travel plans | 15% | 10% |
| Worked from home more often | 11% | 10% |
| Purchased a smaller or more fuel-efficient vehicle | 6% | 5% |
| Something else | 4% | 3% |
| None of these, I haven’t made any changes | 15% | 25% |
| Don’t know | 1% | 0% |
| Total taken action | 84% | 74% |
Which, if any, of the following changes are you considering making in the next 6 months as a result of the conflict?
| 30 April | 19 March | |
| Drive my car less often | 45% | 45% |
| Reduce non-essential spending | 40% | 39% |
| Change how I shop for groceries (e.g. fewer items, cheaper brands) | 29% | 30% |
| Delay large purchases | 30% | 28% |
| Use public transport more often | 19% | 19% |
| Change, delay or cancel international travel plans | 16% | 17% |
| Change, delay or cancel domestic travel plans | 19% | 14% |
| Stock up on fuel | 9% | 15% |
| Work from home more often | 13% | 14% |
| Review my KiwiSaver or investments | 13% | 13% |
| Purchased a smaller or more fuel-efficient vehicle | 9% | 12% |
| Something else | 3% | 2% |
| Not considering making any changes | 14% | 15% |
| Don’t know | 5% | 4% |
| Total considering taking action | 82% | 81% |
Thinking about any changes you have made, or may make in the next 6 months, how confident are you that they will help you manage the impact of the conflict on your finances?
| 30 April | |
| Very confident | 9% |
| Somewhat confident | 33% |
| Neither confident nor unconfident | 32% |
| Not very confident | 18% |
| Not at all confident | 6% |
| Don’t know | 3% |
How concerned are you about the impact of the Middle East conflict on your finances?
| 30 April | 19 March | |
| Very concerned | 32% | 42% |
| Somewhat concerned | 44% | 38% |
| Neither concerned nor unconcerned | 10% | 8% |
| Not very concerned | 7% | 6% |
| Not at all concerned | 3% | 3% |
| Don’t know | 1% | 2% |
| Not aware of the conflict | 1% | 1% |
Note: Survey was conducted by Ideally on 30 April 2026.It was completed by 530 respondents aged between 18 and 80, with the margin of error of 4.3% at a 95% level of confidence.
- [i] With a Westpac Greater Choices home loan, you could get up to $50,000 interest free for five years to help you buy a new electric vehicle.
Eligibility is limited to Westpac home loan customers with minimum lending of $150,000. Lending criteria and terms apply. Products may be amended or withdrawn at Westpac’s discretion. Westpac is not liable for product quality or the customer’s chosen supplier.
- [ii] Electric and hybrid cars, e-mopeds and e-bikes are eligible.
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