Source: Child Poverty Action Group
New research released today by Child Poverty Action Group (CPAG) shows that housing costs are leaving tens of thousands of families without enough income to cover the essentials of daily life, while the supply of affordable rental homes continues to shrink across much of Aotearoa New Zealand.
The findings come from two new research papers by housing researcher Greg Waite, looking at both the affordability of private rentals and the changing supply of affordable rental housing.
Waite says the research shows a growing gap between what families need and what the housing market is delivering.
“Housing is one of the foundations children need to thrive. Families need enough left after rent to buy food, get to work, take part in school activities, visit the doctor and participate in their communities.”
“When rent takes too much, children miss out.”
The first paper, Private Rental Affordability in New Zealand, finds that only 12 percent of households receiving a full adult-rate benefit while out of work have enough income to cover both rent and the costs of a basic standard of living.
The research also finds that more than 70,000 working households renting privately earn less than the equivalent of the full-time minimum wage per adult. The majority, over 45,000, do not receive a benefit, with two-thirds of this group not able to afford both rent and basic living costs.
Single-parent households face some of the greatest pressures, with 59 percent unable to afford a basic standard of living after paying rent.
“This is not just a story about people receiving income support,” says Greg Waite.
“This research shows that housing pressure is affecting working families as well. Single parents and low-income families are carrying the greatest burden, but the problem itself is structural.”
The second paper, Trends in Affordable Rental Housing Supply, finds that the share of affordable rental homes has fallen significantly between 2015 and 2024.
The sharpest declines were recorded in Bay of Plenty and Manawatū-Whanganui, Hawke’s Bay, Southland, Northland and Gisborne, where affordable rental supply has fallen by up to 40 percent.
According to Waite, the findings show that families are facing pressure from both sides: rising housing costs and a shrinking pool of affordable homes.
“A fair society makes sure everyone has enough to participate and belong,” says Greg Waite.
“Children should not miss out on opportunities, experiences or a healthy start in life because rent is becoming increasingly hard to cover.”
“Secure, affordable housing means less pressure on families. When families have enough left after rent, children do better.”
CPAG is calling for policies that improve both housing affordability and income adequacy, so that all children can grow up in homes that are secure, affordable and healthy.
The papers are the first two in a six-part research series examining rental affordability, housing supply, working poverty and housing policy in Aotearoa New Zealand.