More Aucklanders to rent

To house the growing numbers unable to own their own home, an extra 56,000 rental units would be required over the next decade, most provided by small, private investors, Motu Economic and Public Policy Research said in a report for the Centre for Housing Research.

hat was because the residential housing market lacked institutional investment, and the Government's housing policy was focused on the demand side of private housing, via income supplementation.
However, moderate house price growth of between 5% and 8% forecast over the long-term could slow down investment in the private rental market, increasing rental competition and lifting rents.

The difficulty Auckland households faced in buying a house was likely to increase the gap between socioeconomic groups, and had implications for community stability and wealth accumulation, the report's authors said.

New Zealand home ownership peaked at 73.8% in 1991, but has since fallen to 65% and was expected to sink to 61.8% by 2016.