I think the problems NZ first time buyers have are similar to those of UK first time buyers today. There are plenty of cheap houses to be found in NZ, but generally the best wages are in the cities and the housing there is more expensive. In addition to their woes, in NZ the mortgage rate is higher than the UK and, I think they are a little more strict on how much you borrow. On the plus side, there is no stamp duty to pay, rates are fairly low and petrol cheaper for travelling.

A lot of young NZers go to Australia or the UK on their OE (overseas experience) to earn some real money to put towards their future home as well as just seeing the world. Like UK youngsters today, the only other way to get that deposit on a house is to work hard for a few years or get help from parents.