Stats NZ reveals housing strain, renters most affected

New Zealand’s urban housing landscape is evolving rapidly, with rising density and more multi-unit dwellings reshaping cities.
Although homeownership has improved, affordability remains a significant barrier for many households, according to Stats NZ’s Housing in Aotearoa New Zealand: 2025 report.
The update draws on government and official data sources, including 2023 Census findings, and shows that between 2020 and 2024, average household housing costs rose 31%, while disposable incomes grew by only 24%.
“Financial strain of high housing costs can mean households cannot afford housing that meets their needs, therefore affecting their wellbeing and the wellbeing of their families,” said Rosemary Goodyear (pictured), 2023 Census spokesperson.
Households who perceived their housing as “very unaffordable” reported significantly lower wellbeing, averaging a 6.9/10 life satisfaction score, compared to 8.2/10 for those with very affordable housing.
Renters bear the brunt of housing cost pressures
Housing affordability continues to vary widely by tenure. Renters are more likely to face financial stress than owner-occupiers.
In the year to June 2024:
- 45.9% of non-owner households spent 30% or more of their income on housing,
- compared with 26.6% of owner-occupiers.
Among Māori and Pacific non-owner households, affordability stress was even higher, with 64.1% and 69.9% respectively spending over 30% of their income on housing costs.
“In the June 2024 year, about 1 in 4 households that did not own their dwelling spent more than 40 percent of their income on housing costs, compared with one in seven home-owning households,” Goodyear said.
House prices still outpacing incomes
Despite some regional improvements, house prices remain out of reach for many.
In the June 2024 year:
- Median house price: $753,500
- Median household equivalised disposable income: $51,597
This equates to a house-price-to-income ratio of 14.6, highlighting the difficulty for average households to buy a home outright. Auckland, rated “severely unaffordable” by the 2025 Demographia International Housing Affordability report, continues to be the least affordable region.
Recent QV data supports the trend, showing the national average property value edged up just 0.1% to $913,772 in the three months to May 2025, as the market stabilises following sharp declines. Values remain 1.1% lower than the same period last year and 14.1% below their late 2021 peak.
More homes, more density across the country
Every region in New Zealand saw increased housing density from 2013 to 2023. Auckland led with an increase of 18.3 dwellings per square kilometre, up 17.9%, followed by Nelson (12.1%) and Wellington (10.7%).
Even already-dense local board areas in Auckland experienced further increases, reflecting intensification efforts across the city.
Heating standards driving healthier homes
The adoption of heat pumps has surged since the introduction of Healthy Homes standards. In non-owner-occupied dwellings, heat pump use jumped from 38% in 2018 to 67.2% in 2023.
“By 2023, heat pumps were just as likely to be used in non-owner-occupied homes as in owner-occupied homes,” Goodyear said.
The rise was particularly strong in rental households:
- Private rentals: up from 38.9% to 67.3%
- Social housing: up from 26.9% to 74%
- Kāinga Ora rentals: highest uptake at 76.2%
The 2023 Census shows fewer households reported issues with dampness and mould compared to 2018 – an improvement likely linked to better heating and improved health outcomes.
Outlook: More change ahead
As New Zealand grapples with intensifying urbanisation, affordability pressures, and shifting tenure patterns, the housing system continues to evolve.
The Housing in Aotearoa New Zealand: 2025 report underscores the need for ongoing investment and policy attention to improve wellbeing and access for all.