One-third of low-income households in Aotearoa New Zealand spent more than 40 percent of their income on housing costs in the year ended June 2024, according to data released by Stats NZ today.
In the year ended June 2024, approximately 31 percent of households in the lowest two income quintiles spent 40 percent or more of their income on housing costs (31.7 percent of households in the lowest income quintile (under $41,600) and 31.0 percent for those in the second income quintile ($41,600 to $69,999)).
Across all households, 19.7 percent spent 40 percent or more of their income on housing costs, up from 18.2 percent the previous year.
Households spent an average of $22.20 per $100 of income on housing costs, up from $20.80 in 2019.
"Although incomes increased, these statistics show that people spent a higher proportion of their money on housing costs than they had in the past," household financial statistics spokesperson Chris Pooch said.
"This creates further pressure on a household's budget, along with things like groceries and petrol getting more expensive over the same time period."
| Year ended June | $ |
| 2019 | 20.8 |
| 2020 | 20.9 |
| 2021 | 20.4 |
| 2022 | 20 |
| 2023 R | 21.6 |
| 2024 | 22.2 |
| 20.3 | 21.3 |
|---|---|
| 20.5 | 21.3 |
| 20 | 20.8 |
| 19.6 | 20.4 |
| 21.2 | 22 |
| 21.8 | 22.6 |
Between the years ended June 2023 and June 2024, average annual household equivalised disposable income (before housing costs) increased by 5.5 percent. However, average weekly rent payments increased 9.0 percent and weekly mortgage payments increased by 8.7 percent.
More than 1 in 3 households (38.2 percent) felt that their income was 'not enough' or 'only just enough' to meet their everyday needs. This figure has increased over the last two years.
Household living costs increase 5.4 percent reported the cost of living increase for the average New Zealand household in the 12 months to the June 2024 quarter.
The largest contributors to the increase in the cost of living for the average household were interest payments, private transport supplies and services, and rent. During the same period, housing and household utility prices, as measured by the Consumers Price Index (CPI), increased 4.4 percent and was the largest contributor to the annual inflation rate.
Renters continue to feel the impact of high housing costs
In the year ended June 2024, 28.4 percent of households that did not own their home were spending more than 40 percent of their disposable income on housing costs.
Average weekly rent payments increased from $427.10 in 2023 to $465.50 in 2024 (up 9.0 percent).
Over half (55.2 percent) of renters felt that their income was 'not enough' or 'only just enough' to meet their everyday needs in the year ended June 2024.
| Year ended June | Value |
| 2019 | 52.8 |
| 2020 | 49.9 |
| 2021 | 51.1 |
| 2022 | 50 |
| 2023 R | 53.5 |
| 2024 | 55.2 |
| 51.3 | 54.4 |
|---|---|
| 48.2 | 51.7 |
| 49.5 | 52.7 |
| 47.5 | 52.5 |
| 51.9 | 55 |
| 53.8 | 56.6 |
Homeowners feel increasing pressure from mortgage payments
1 in 7 households (14.8 percent) that owned or partly-owned their home spent more than 40 percent of their disposable income on housing costs in the year ended June 2024.
Weekly mortgage payments up from 2022 reported record-high mortgage payment increases for the year ended June 2023.
Average weekly mortgage payments continued to increase in 2024, from $605.50 to $658.20, an increase of 8.7 percent on the previous year. Mortgage interest payments rose 35.8 percent, while mortgage principal repayments were down 17.8 percent from the previous year.
In 2024, households making mortgage payments were more likely to report that their income was 'not enough' or 'only just enough' (34.4 percent, up from 31.5 percent in the year ended June 2023).
| Year ended June | Percent |
| 2019 | 31.8 |
| 2020 | 28.9 |
| 2021 | 27 |
| 2022 | 27.7 |
| 2023 R | 31.5 |
| 2024 | 34.4 |
| 30.3 | 33.3 |
|---|---|
| 27.4 | 30.4 |
| 25.8 | 28.2 |
| 25.8 | 29.6 |
| 30.2 | 32.9 |
| 33.0 | 35.9 |
1 in 10 people in New Zealand in material hardship
In the year ended June 2024, 9.4 percent of households were in material hardship.
A household is defined as being in material hardship if it lacks six or more of 17 items on the DEP-17 index. These items are things most people regard as essential, and include putting off doctor's visits, going without fresh fruit and vegetables, and putting up with feeling cold.
"What we're seeing is continued housing costs pressure on both renters and those paying mortgages. Spending more on housing costs means there is less money left over to pay for other necessities," Pooch said.
| Year ended June | Value |
| 2019 | 9.2 |
| 2020 | 7.6 |
| 2021 | 7.1 |
| 2022 | 7.4 |
| 2023 R | 8.6 |
| 2024 | 9.4 |
| 8.6 | 9.8 |
|---|---|
| 7 | 8.2 |
| 6.6 | 7.6 |
| 6.6 | 8.2 |
| 7.9 | 9.3 |
| 8.8 | 10.0 |
The percentage of children living in households that experience material hardship is one of the primary measures of child poverty.
Child poverty statistics: Year ended June 2024 has more information on child poverty in New Zealand.
Household income and housing-cost statistics: Year ended June 2024 provides further information about income and housing-cost statistics.
