Media Release

29 February 2008

Homeownership Decline Further Evidence of Housing Crisis

New Zealand First housing spokesperson Pita Paraone says the report by the Centre for Housing Research showing that homeownership has declined in New Zealand is further evidence of the housing affordability crisis.

“The report shows that Kiwis are having to delay the dream of owning their own homes until much older, with many waiting to well over the age of 40. Even then, they have to make do with a smaller property that would still take a large chunk of their disposable income to pay off,” said Mr Paraone.

“With the current economic climate and several high-street banks yesterday raising their mortgage rates further, I’m afraid it doesn’t fare well for those first-time buyers and low-income earners who had hoped to take advantage of the recent fall in house prices. It will still be beyond the reach of many Kiwis.

“New Zealand First recognises the social significance of homeownership and the report further highlights the critical need to address this important issue.

“The Government recently announced plans to tackle housing affordability but it may be a case of too-little-too-late,” said Mr Paraone.

ENDS

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