Wealth, the OCR and migration

The value of houses at $1.57 trillion trounces the NZ Super Fund and Kiwisaver at $154 billion, listed shares at $169 billion and commercial real estate at $313 billion.

Kiwis live in 1.68 million houses, and those homes make up 43% of total household assets, rising 4% since 2018.

Outstanding mortgage debt of $347 billion is held against residential property and about half of that is due to roll on to higher interest rates this year and early next year.

CoreLogic says this will require significant adjustment to those households’ finances. In terms of new lending flows, however, loans at high multiples of debt have fallen to low levels.