House Prices

End of the quarter-acre paradise

New Zealanders are becoming a nation of big-spenders caught in a rental trap and doomed to never become homeowners, warns a report released yesterday.

Sunday, June 06th 2004

People in their 20s and 30s are spending their money on domestic goods, putting off having children and shifting about the country to chase career opportunities.

That, combined with rapidly rising house prices, easier access to money and the advent of revolving credit, means that many young people cannot get together enough cash for a house deposit, says the report from the Centre for Housing Research.

It commissioned a study from property consultants DTZ to examine the housing sector and changes in the past two decades.

The study follows a stern warning issued this week by Deutsche Bank chief economist Ulf Schoefisch about a looming debt crisis, based on households piling up debt at nearly three times the pace of a few years ago.

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