Renting more common

01 November 2015

 

An increasing proportion of households are renting as population growth since 2013 has outpaced increases in the supply of new properties, indicating a positive trend for investors.

According to figures released by Statistics NZ, population growth was an estimated 1.9 percent in the year ended June 2015, compared with private dwelling growth of 1.2 percent. The number of households renting increased from 23% in 1991 to 32% last year. In contrast, the proportion of households who own their dwelling (with or without a mortgage) decreased from 74 percent in 1991 to 64% last year.

The latest estimates indicate a private dwelling stock of 1.8 million, of which about 1.7 million are usually occupied. Given a population of 4.6 million, this is an average of 2.7 people per household.

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