November 4, 2024 • 6 mins
A new survey from Kiwibank reveals a majority of Kiwis think owning a home is crucial to getting ahead in New Zealand - but many feel locked out of the market.
Over two-thirds of non-owners feel pessimistic about home ownership, with millennials in particular believing they won't get on the property ladder.
Kiwibank CEO Steve Jurkovich says people aged 30 to 44 have seen house prices surge the most over their lifetimes - and they feel the most overwhelmed.
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Speaker 1 (00:01):
Ever do for Zealand.
Speaker 2 (00:02):
So Kiwi Bank has just released its state of home
Ownership report, and it turns out that of those of
us who don't already own a home, about a third
reckon they never will. The boss of a Kiwi Bank
is Steve yucovichin with us now, Steve hi, Ever, did
you ask them why they think this?
Speaker 1 (00:17):
Yeah, we did. And a couple of reasons that are
probably not a big surprise to listeners is the you know,
the cost of living, the amount of deposit that you've
got to get together, and I think, you know, the
relative wage impact versus high house prices. You know, I
think few people who will resigned that that's going to
be a really big gat Yeah.
Speaker 2 (00:37):
I did the numbers again because I actually got the numbers.
I was talking about it before and I got the
numbers wrong. If you take the number, it's about half
of what I thought. So if you take the number
of us who don't own homes, it's thirty three percent,
and then you look at a third of those, it's
only eleven percent of New Zealanders, right, is around about
ten percent of us. Actually that's stressful.
Speaker 1 (00:56):
Well, it's an interesting point. I guess I mean, what
we found from doing the bench stuff is that you
don't really know unless you start to run these numbers
and understand what sort of anecdotea and what people care about.
I think for that ten percent, they would argue that
they feel really locked out. I think many others are
thinking what's my pathway? And it was really interesting to
me to how many people were thinking about a new
(01:17):
route and a new way to own a home in
a different way.
Speaker 2 (01:21):
Okay, now before we get to that, because I do
want to talk to that to you about that. Why
are millennials though, bearing this harder than anybody else. It's
like seventy percent of millennials feel stressed out about it,
and that's way above everybody else.
Speaker 1 (01:34):
Yeah, I mean it's interesting, isn't it. You know, for
that group of people that are in that sort of
thirty to forty four break, I think they are the
witnesses of a very strong growth in house prices. I
think they probably have navigated a whole lot of different
changes around the regulations and things like that, so probably
all feels a little bit overwhelming for some of them.
Speaker 2 (01:55):
Did you ask their next group down the gen z
is about how they feel about it.
Speaker 1 (02:00):
Yeah, we did it, and so that's for your listeners
that's eighteen to twenty nine. They feel a little less
locked out, and maybe they are seeing a different world
where house prices haven't been going up as fast, or
maybe they haven't actually turned their mind to, you know,
saving the deposit yet, or maybe they're much more thrifty
and they've been saving well and so they feel good
about it.
Speaker 2 (02:20):
Does that potentially say, though, then that some of it
may be in millennials heads?
Speaker 1 (02:26):
It could be. I mean, I think what was really
interesting was right across millennials, Gen X, Gen Z and boomers,
more than half the people felt like they were going
to get some sense of being locked out. So across
all those generations there's a lot of people that feel
like they're doing it tough. We did some stats on
interest rates for the fixed year two rate from two
thousand and four twenty twenty four. So the average two
(02:50):
year fixed rate mortgage during that time was six point
two one and today with Kerry Bent, you can get
a mortgage at five point six y nine. So you know,
over a long run twenty years, the interest rates are
about where they've been, but certainly they've gone up really
steeply from recent times. So I think some stuff stays
the same and a lot changes again.
Speaker 2 (03:09):
Now, the alternatives that you were talking about owning is
things like rent to own, co ownership, things like that.
They're out there. Those things exist, but do they exist
on a large enough scale to kind of meet the
demand of people.
Speaker 1 (03:21):
Who want to know? I don't think they do. And
I think it's a great point, which is one of
the reasons that we were thinking about doing this research
was how do we raise awareness of these options? Because
if we can raise awareness, then you'll get more people
who are keen to participate, more developers who are keen
to do it this way, and so it's a bit
of a virtuous circle. If we can get more people
asking for it, then more people will develop it. More
(03:43):
people develop it, then more people will get money lent
to them.
Speaker 2 (03:46):
Hey, on interest rates, what do you reckon the RB
and Z's going to do later this month?
Speaker 1 (03:51):
I think they're going to cut by fifty, not seventy five. No,
I don't think so. I think seventy five just feels
too much, I think, and there's no real need in
my mind to do that, which is it's a very
bold moved. I think to go by seventy five to
fifty feels like gives people, you know, enough certainty around direction. Yeah,
(04:11):
but also allows people to have confidence that you know,
we're moving in the right direction.
Speaker 2 (04:14):
But what about the argument that it's still restrictive, Right,
it's restricted. They admit it's restrictive at the level it is,
may well still be restrictive even with fifty shaved off it,
and then we have to sit there, Steve for three
months with it until they come back from the summer.
Speaker 1 (04:26):
Hollybobs, I'm hearing you here, but I think the risk
is always that you know, you over tighten and overloose
and too fast, and so I think fifty is probably
most likely. I take your point about seventy five and restrictive,
but I think fifty is much more likely.
Speaker 2 (04:42):
Hey, are you going to have to go and sit
in front of that Bank inquiry at Parliament?
Speaker 1 (04:46):
I am going to get that privilege?
Speaker 2 (04:48):
Yes, privilege, privilege or grilling? When are you doing it?
Speaker 1 (04:52):
We've got the Christmas surprise where I think we're the
very last of the bench to go forward.
Speaker 2 (04:58):
That is so that you are so lucky because by
then everybody, every one of US is probably already on
a holiday.
Speaker 1 (05:04):
Aren't We don't say that hither you'll be glued to it.
I'm sure.
Speaker 2 (05:07):
I'm sure. Have you already put it out there what
you earn because they're obsessed with that.
Speaker 1 (05:14):
Look, I'm sure they are. And I mean we'll get
to cross that bridge if it comes to it.
Speaker 2 (05:17):
Yeah, okay, well good luck. You might want to front
foot that one, Steve, Thanks very much, Steve Yukovich, boss
of keV, back yet, because you know what you mean?
You remember remember that had the thing with Antonio Antonia
from A and Z where they were like, how much
do you earn? How much do you? And She's like,
I don't actually know because you stop counting, as I
told you at five hundred thousand, don't you once you
got your sties? I learned this. Did you know that?
That's just like short term incentives, that's what they call them,
(05:39):
the corporate speak. My friend told me yesterday, Once you
put your stiyes on and nobody knows what you know.
I mean, very few people will you know, have worked
out what their base salary is plus their sties and
they're no, And I reckon you stop counting at five
hundred thousand and shits like multiples of that. So they
were shocked. They were like, how can you not know
how much you earn? So anyway, Steve, better put it
(05:59):
out there, better be, better be to the dollar. Last year,
I earned X amount of money. Not that it's any
of our business, but apparently it also is.
Speaker 1 (06:06):
For more from Hither Duplessy Allen Drive, Listen live to
news talks. It'd be from four pm weekdays, or follow
the podcast on iHeartRadio
Ever do for Zealand.
Speaker 2 (00:02):
So Kiwi Bank has just released its state of home
Ownership report, and it turns out that of those of
us who don't already own a home, about a third
reckon they never will. The boss of a Kiwi Bank
is Steve yucovichin with us now, Steve hi, Ever, did
you ask them why they think this?
Speaker 1 (00:17):
Yeah, we did. And a couple of reasons that are
probably not a big surprise to listeners is the you know,
the cost of living, the amount of deposit that you've
got to get together, and I think, you know, the
relative wage impact versus high house prices. You know, I
think few people who will resigned that that's going to
be a really big gat Yeah.
Speaker 2 (00:37):
I did the numbers again because I actually got the numbers.
I was talking about it before and I got the
numbers wrong. If you take the number, it's about half
of what I thought. So if you take the number
of us who don't own homes, it's thirty three percent,
and then you look at a third of those, it's
only eleven percent of New Zealanders, right, is around about
ten percent of us. Actually that's stressful.
Speaker 1 (00:56):
Well, it's an interesting point. I guess I mean, what
we found from doing the bench stuff is that you
don't really know unless you start to run these numbers
and understand what sort of anecdotea and what people care about.
I think for that ten percent, they would argue that
they feel really locked out. I think many others are
thinking what's my pathway? And it was really interesting to
me to how many people were thinking about a new
(01:17):
route and a new way to own a home in
a different way.
Speaker 2 (01:21):
Okay, now before we get to that, because I do
want to talk to that to you about that. Why
are millennials though, bearing this harder than anybody else. It's
like seventy percent of millennials feel stressed out about it,
and that's way above everybody else.
Speaker 1 (01:34):
Yeah, I mean it's interesting, isn't it. You know, for
that group of people that are in that sort of
thirty to forty four break, I think they are the
witnesses of a very strong growth in house prices. I
think they probably have navigated a whole lot of different
changes around the regulations and things like that, so probably
all feels a little bit overwhelming for some of them.
Speaker 2 (01:55):
Did you ask their next group down the gen z
is about how they feel about it.
Speaker 1 (02:00):
Yeah, we did it, and so that's for your listeners
that's eighteen to twenty nine. They feel a little less
locked out, and maybe they are seeing a different world
where house prices haven't been going up as fast, or
maybe they haven't actually turned their mind to, you know,
saving the deposit yet, or maybe they're much more thrifty
and they've been saving well and so they feel good
about it.
Speaker 2 (02:20):
Does that potentially say, though, then that some of it
may be in millennials heads?
Speaker 1 (02:26):
It could be. I mean, I think what was really
interesting was right across millennials, Gen X, Gen Z and boomers,
more than half the people felt like they were going
to get some sense of being locked out. So across
all those generations there's a lot of people that feel
like they're doing it tough. We did some stats on
interest rates for the fixed year two rate from two
thousand and four twenty twenty four. So the average two
(02:50):
year fixed rate mortgage during that time was six point
two one and today with Kerry Bent, you can get
a mortgage at five point six y nine. So you know,
over a long run twenty years, the interest rates are
about where they've been, but certainly they've gone up really
steeply from recent times. So I think some stuff stays
the same and a lot changes again.
Speaker 2 (03:09):
Now, the alternatives that you were talking about owning is
things like rent to own, co ownership, things like that.
They're out there. Those things exist, but do they exist
on a large enough scale to kind of meet the
demand of people.
Speaker 1 (03:21):
Who want to know? I don't think they do. And
I think it's a great point, which is one of
the reasons that we were thinking about doing this research
was how do we raise awareness of these options? Because
if we can raise awareness, then you'll get more people
who are keen to participate, more developers who are keen
to do it this way, and so it's a bit
of a virtuous circle. If we can get more people
asking for it, then more people will develop it. More
(03:43):
people develop it, then more people will get money lent
to them.
Speaker 2 (03:46):
Hey, on interest rates, what do you reckon the RB
and Z's going to do later this month?
Speaker 1 (03:51):
I think they're going to cut by fifty, not seventy five. No,
I don't think so. I think seventy five just feels
too much, I think, and there's no real need in
my mind to do that, which is it's a very
bold moved. I think to go by seventy five to
fifty feels like gives people, you know, enough certainty around direction. Yeah,
(04:11):
but also allows people to have confidence that you know,
we're moving in the right direction.
Speaker 2 (04:14):
But what about the argument that it's still restrictive, Right,
it's restricted. They admit it's restrictive at the level it is,
may well still be restrictive even with fifty shaved off it,
and then we have to sit there, Steve for three
months with it until they come back from the summer.
Speaker 1 (04:26):
Hollybobs, I'm hearing you here, but I think the risk
is always that you know, you over tighten and overloose
and too fast, and so I think fifty is probably
most likely. I take your point about seventy five and restrictive,
but I think fifty is much more likely.
Speaker 2 (04:42):
Hey, are you going to have to go and sit
in front of that Bank inquiry at Parliament?
Speaker 1 (04:46):
I am going to get that privilege?
Speaker 2 (04:48):
Yes, privilege, privilege or grilling? When are you doing it?
Speaker 1 (04:52):
We've got the Christmas surprise where I think we're the
very last of the bench to go forward.
Speaker 2 (04:58):
That is so that you are so lucky because by
then everybody, every one of US is probably already on
a holiday.
Speaker 1 (05:04):
Aren't We don't say that hither you'll be glued to it.
I'm sure.
Speaker 2 (05:07):
I'm sure. Have you already put it out there what
you earn because they're obsessed with that.
Speaker 1 (05:14):
Look, I'm sure they are. And I mean we'll get
to cross that bridge if it comes to it.
Speaker 2 (05:17):
Yeah, okay, well good luck. You might want to front
foot that one, Steve, Thanks very much, Steve Yukovich, boss
of keV, back yet, because you know what you mean?
You remember remember that had the thing with Antonio Antonia
from A and Z where they were like, how much
do you earn? How much do you? And She's like,
I don't actually know because you stop counting, as I
told you at five hundred thousand, don't you once you
got your sties? I learned this. Did you know that?
That's just like short term incentives, that's what they call them,
(05:39):
the corporate speak. My friend told me yesterday, Once you
put your stiyes on and nobody knows what you know.
I mean, very few people will you know, have worked
out what their base salary is plus their sties and
they're no, And I reckon you stop counting at five
hundred thousand and shits like multiples of that. So they
were shocked. They were like, how can you not know
how much you earn? So anyway, Steve, better put it
(05:59):
out there, better be, better be to the dollar. Last year,
I earned X amount of money. Not that it's any
of our business, but apparently it also is.
Speaker 1 (06:06):
For more from Hither Duplessy Allen Drive, Listen live to
news talks. It'd be from four pm weekdays, or follow
the podcast on iHeartRadio
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