Shopless Press Release: The Revised Kiwi Dream Home
We’ve all heard the kiwi dream. Some of us are lucky enough to have reached this idyllic vision. A lifestyle block – with the freedom to enjoy the kiwi outdoors while being close to town. But with the endless talk of rising property prices, the Kiwi’s dream seems less attainable. Have New Zealanders rated the Kiwis’ dream home, and if so, what does it look like today? Without store
looked at the past and present of the New Zealand dream home, so see if the Kiwis have priced their future based on the current property market.
The kiwi dream has been around since the 1980s. The original kiwi dream is centered on owner of a quarter-acre of land, with a home large enough to accommodate a family and at least one motor vehicle. In the early 2000s, the desire for new construction became more popular. Like new homes, especially in the South Island, had to have good insulation and be equipped with double glazing. Many New Zealanders have achieved this kiwi dream during this time – either a lifestyle block or a new build. However, those looking to enter the housing market in the current housing climate would be at a disadvantage, despite government funds and grants for first-time buyers. Property prices continue to rise, mortgage rates also rise, and as cities grow, “lifestyle blocks” move away from the city center. Lending criteria for mortgages recently tightened in 2022, making it more difficult for those looking to secure a mortgage.
Looking at past statistics, the median home price in 2000 (22 years ago) was $150,000, with Auckland in the slightly higher range of $150,000-$250,000. At the end of 2021, median house prices were now at $1 million.
This is a 567% increase in the median house price since 2000. Median household and personal incomes have also increased, but in the same way. New Zealand median household income in 2000 was $794 per week, this amount has now increased to $1,880 per week in 2021. A 136% increase in median household wage/salary. Unfortunately, this does not follow the enormous growth in property prices over the 22 years studied. In 2021 alone, house prices in New Zealand rose by 22%, the largest percentage increase in one year since 2004, when we saw a 24.5% increase in overall house prices across the country.
With this in mind, the housing desires of New Zealand buyers have now changed. A Analysis of Kainga Ora suggested that Kiwis were more interested in a smaller house if it had a functional design. In their analysis, they said, “Good design is key. If homes are functional, attractive, and smart, they can seem a lot more spacious than they actually are. We’ve proven for ourselves that good design pays off and, in fact, tiny houses are attractive,” showing that Kiwis are interested in tiny houses if they fit the desired purpose. Moreover, if a house is accessible to the required needs of the family or the individual, it is also found to be more desirable. Another Suggested Item that the kiwi dream, while still desirable, was being re-evaluated to accommodate the efficiency of a home. With people adopting apartments or houses with minimal land in order to be closer to public transport, work or social needs. As well as to reduce the cost of land when buying a house.
Many media analyzes of the kiwi dream suggest that the vision of a house with a section, or even a new construction with less space, becomes unattainable. Indicating that now Kiwi’s dream is to own his own home.
The New Zealand initiative suggested that there was such a housing crisis in New Zealand that “Even if the border remained closed for the next 20 years, we would still need to build at least 20,000 net new homes each year to meet changing demographics “. And in 2017 tit spinoff did a series on the housing crisis stating “Fewer people own their homes now than 60 years ago.”
The government accent has been to create equal opportunities for homebuyers across generations, with a focus on first-time homebuyers. Despite this, the current housing shortage and median home price do not make it easy for those looking to enter the housing market.
Subsequently, the lifestyle dream of Kiwi home buyers has now changed. Many New Zealanders are only looking to buy their own home. The options of a large section or a new home are becoming less feasible, especially for first-time home buyers. Some New Zealanders are now focusing on the efficiency of their housing, accessibility to household activities and functions rather than additional benefits. The kiwi’s dream house seems like a dream of the past.
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