Kiwibank’s latest State of Home Ownership Index indicates that confidence in buying a home is improving, with 85% of New Zealanders saying home ownership remains central to the Kiwi dream.
The research shows that 43% of non-homeowners now believe buying a home is more achievable than a year ago, a 7% lift.
Steve Jurkovich, Kiwibank chief executive, said: “We know buying a home isn’t always easy, especially over the past couple of years with rising living costs and higher interest rates.
“But we’re seeing incredible resilience from Kiwi who are determined to get on the ladder.”
The findings show that 67% of people see owning a home as crucial to getting ahead, with stronger agreement among homeowners at 72%, compared with 56% of non-owners.
Millennials and Gen Z were the most likely to view home ownership as important.
Motivations among non-owners were grounded in security and independence, with 88% wanting their own space, 85% seeking improved quality of life, and 80% wanting more stability and control.
Barriers remain significant, although perceptions have improved. The research found that 57% of non-owners feel locked out of the market, a 6% improvement.
Cost of living remains the biggest obstacle at 60%, followed by high house prices at 57% and saving for a deposit at 45%.
Jurkovich said: “While optimism about getting on the ladder has lifted, many Kiwi still feel locked out.
“Yet, true to Kiwi spirit, they’re willing to adapt and compromise to achieve their dream of home ownership.
“That includes exploring non-traditional pathways like co-ownership (36%) or relocating to a different region (45%).”
Confidence in the home-buying process is also improving, with mortgage advisers and banks named as the most common sources of guidance.
Jurkovich said: “What’s great to see is that more Kiwi feel confident about the home buying process, with mortgage advisers and banks being the most common sources of guidance.
“That’s exactly what we’re here for — having great conversations and helping you every step of the way, from saving for a deposit to finding a way to get you on the ladder.”
The research also highlights determination among existing homeowners, with 82% saying paying off their mortgage quickly is their top priority.
Kiwibank reports that around 40% of its fixed-rate customers are making extra payments each month, helping them shorten the life of their loans.
Jurkovich said lower interest rates and recent Loan-to-Value Ratio changes are expected to create more opportunities for buyers as the market continues to evolve.