18.11.10 :: Terrence Aschoff, Manager CHRANZ

The Centre for Housing Research, Aotearoa New Zealand (CHRANZ) has today released the research report “The Determinants of Tenure and Location Choices of 20-40 year old Households in the Auckland Region” (November 2010) that identifies the patterns and dynamics of housing demand (tenure and location choices) among younger households in the Auckland region. Environmental, social and economic implications on Auckland's spatial planning and urban growth are also examined.

Undertaken by Beacon Pathway Ltd, this research was funded by CHRANZ, the Ministry for the Environment and the Ministry of Economic Development with funding from the Ministry of Research, Science and Technology’s Cross-Departmental Research Pool.

Key Points:

• Location is critical. Once Auckland region’s younger householders have decided what locations best optimise their connections to places and people, their preferences are:
 home ownership, especially for families;
 a detached dwelling;
 comfort and functionality (which involves dwelling size and warmth); and
 homes and neighbourhoods that are safe for children.

• Quality of life, closeness to familial and social connections rates higher than closeness to work.

• When younger households move within Auckland they are more likely to move another dwelling in the same suburb or neighbourhood. Lower income households particularly limit the distance they move.

• The younger households (25-39 years) age group has experienced NZ’s biggest fall in home ownership rates (1986 – 2006) with falls most pronounced in Auckland.

• The number of younger households in Auckland’s ‘intermediate housing market’ has more than doubled in five years - from 24,908 in 2001 to 51,866 in 2006. (Between 1986 and 2006, the largest falls in home ownership nationally have been among younger age groups: 17.9 percent among 25-29 year olds; 17.7 percent among 30-34 years olds; and15.5 percent among 35-39 year olds.)

• Rental tenure among younger households is concentrated especially in lower income households, and among Asian, Maori and Pacific younger households. ( IHM is the number of private renter households who have a least one member in paid employment and cannot afford to purchase a dwelling at the lower quartile sale price, assuming standard bank lending conditions.)

• Significant numbers of children in younger households live in rental dwellings.

• A burgeoning population and increased demand for rentals will place further strains on Auckland region's infrastructure – transport and amenities.

• Multi-pronged approaches are needed to support diverse housing choices of younger households, including recognition that housing is integral to city resilience and connectivity.

A full copy of the research report is available online. A copy of the CHRANZ Research Bulletin is available online.

For further information please contact:

Kay Saville-Smith (CRESA)
Phone: 04 384 5921
Cell: 027 4303 575

or

Dr Bev James (Public Policy & Research)
Cell: 027 2478 353

or

Terrence Aschoff
CHRANZ
terrence.aschoff@chranz.co.nz
Phone: 04 439 3326