Most renters are not happy with the options available

Tuesday, 7 October 2025

Nearly 75% of renters are not happy with the housing choices available to them and want to see more alternatives to traditional housing models, a new report reveals.

The Urban Advisory’s New Zealand Housing Survey collected data from 2587 adults between August 2024 and February 2025. A key finding was that housing mobility was constrained for renters and downsizers.

Renters reported significantly lower housing satisfaction and quality outcomes than homeowners, but a lack of options was a barrier to moving, while downsizers struggled to find suitable options.

The lack of mobility affected wellbeing, adaptability and tenure security, and people were increasingly prioritising choice in housing type and tenure, the report found.

That meant there was also a growing appetite for alternative housing models, including co-housing, rent-to-buy, residential co-operatives, community land trusts, shared ownership models and build-to-rent.

Dr Natalie Allen, managing director of The Urban Advisory, said flexibility across life stages was seen as equally, if not more, important than overall supply.

The gap in the housing eco-system

While the market served its core demographic, key segments, such as older adults seeking to downsize, financially stretched households, and those seeking culturally grounded housing, were under-served, she said.

“For some, a lack of housing mobility means they’re stuck in place, even when they want or need to move. For others, constant relocation is the norm, driven by the absence of affordable, suitable options.”

Allen said there was also a big question around the diversity of types of housing stock available and the price points across the housing continuum.

More of all types of stock was needed, but there needed to be a range of options appropriate for different life stages as peoples’ housing trajectory was not a linear one, she said.

There were no “stepping stone”, support housing options for students leaving university, rebuilding from relationship breakups, or older people whose planned trajectories had not panned out, for example.

Community key to ‘ageing in place’

The report found that for those aged 65 plus there was a strong desire to “age in place”, with 64% of those aged 75 or over saying they “don’t intend to ever move”.

Allen said stability was positive for individuals, but it meant fewer homes were freed up for younger families, especially as many older homeowners chose to stay in larger homes rather than downsize.

“So we need to provide a better range of options, whether to own or to rent, at different price points to allow it. That means more smaller homes, townhouses, and apartments.”

While the report showed 79% of participants would prefer a standalone, single-storey house, 60% said they would consider townhouses or semi-detached homes.

“We are seeing a trend towards greater density. For example, at Hobsonville Point in Auckland the masterplan ended up more than three times denser than what was originally proposed, so there is a big uptake in demand.”

Neighbourhood values

It was not just about the type of house though, as the report found neighbourhood features were a key consideration for over 40% of participants when choosing a place to live.

The highest priorities were being safe from crime and proximity to services and amenities such as schools and public transport.

Allen said it was about having more homes in the locations that best served people, but there needed to be more nuance about that.

There was a big gap between what people wanted and what sort of housing was being delivered, she said.

“Until the gap is understood, which is the purpose of this ongoing research, and addressed, New Zealanders won’t have the range of housing options they need to thrive.”