What sort of homes do New Zealanders really want?
Monday, 13 April 2026
Nearly half of New Zealanders are unhappy with the housing options currently available to them, but that disconnect opens up opportunities for developers, a housing researcher says.
The Urban Advisory has released its second New Zealand Housing Survey, and it found a big mismatch between the existing housing stock and the homes that people actually want.
Widespread frustration was evident, with 45.3% of respondents saying they were dissatisfied with the options available, the survey revealed.
It also found that while 69.8% felt some level of agency in making decisions about their housing, that sense of control was often undermined by a lack of choice in the marketplace and high costs.
Read more:
Next stage of $1 billion Auranga development in Drury begins
Iran war: Huge surge in demand for ‘off-grid’ properties - Trade Me
Urban Advisory co-founder and director Natalie Allen said many people, especially renters and downsizers, could not access homes that suited their needs, with prices and quality big factors in that.
About 50% of respondents were worried about being able to pay their housing costs in future, and for many the amount of household income spent on housing was stretched beyond the 30% generally accepted as affordable, she said.
“For those owning or wanting to buy a home, recent OCR cuts have reduced monthly mortgage costs, but they don’t address the deposit gap.
“While many moderate-income households would be able to afford mortgage repayments, they can’t accumulate a deposit. That’s a huge issue, and people want better support for first home buyers.”
The dissatisfaction with existing housing options was not just about prices though, it was also about housing types and location, Allan said.
“People want more diverse options, and they want different options at different stages of their lives, such as when buying a first home or retiring and downsizing.
“But there’s a lack of nuance in what is available when they dig into the market. Retirees with equity who are downsizing don’t necessarily want a one-bedroom apartment, for example.”
People make housing choices for a number of reasons, including proximity to family, employment or education, she said.
“Many first home buyers are realistic and are prepared to accept a smaller type of home, such as an apartment, but don't want to compromise on location or access to amenities like shops or green spaces.
“We need to have a mix of housing stock throughout communities, but currently there’s a lot of similar stock clustered in similar areas ‒ although that’s partly due to the zoning of our cities.”
Allen said there was a clear market gap for the development of more varied and stable housing products that moved beyond the traditional “one-size-fits-all“ approach.
Not only was there strong appetite for more diverse, well‑located housing options than currently provided, but a demographic shift the market was not ready for was also looming, she said.
“Nearly half (49%) of people planning to retire in the next 10 years expect to downsize, and yet the market offers very few well-located, accessible, compact homes at the quality and price this cohort needs.
“And 52% of respondents want more secure, long-term rental options, yet the market delivers almost none at scale.”
For developers and commercial stakeholders, these insights identify a high-value opportunity to de-risk projects by targeting the 45.3% of the population currently looking for better alternatives, she said.
“Providing ‘the right houses in the right places’ is not only a social necessity but a primary driver for commercial success.
“Internationally proven housing models such as build-to-rent, shared equity, cooperative housing, community land trusts, progressive ownership, and new-generation retirement living, remain undersupplied in New Zealand, despite clear and growing demand.”
Meanwhile, the survey revealed a shift in the property features most highly valued, with safety from natural hazards and crime now the top priorities, at 76.3% and 75.3% respectively.
People also valued energy efficiency, privacy, low maintenance, and access to services, nature, and public transport, and were open to new pathways beyond traditional ownership, the survey found.
Allen was surprised by the high value now placed on safety from natural hazards, but said it was probably a symptom of the increasing rate of severe weather events hitting New Zealand.
This year alone had seen repeated destructive flooding events around the country, and that made it an issue that was top of mind for people, she said.
“It’s a great reminder for central government and councils around the country that we have been delaying conversations around managed retreat for too long.
“No one has wanted to embark on the political debate around this for some time, and this indicates a significant amount of people are ready, conscious of the issue and the need for change.”