Can't save enough for a home so let's go shopping
5:00AM Saturday April 28, 2007
Plummeting home ownership rates could be socially disastrous, according to the hard-hitting report on housing trends released this week.
The Centre for Housing Research report released on Monday pointed to the potential fallout for society as well as individuals.
"Decline in home ownership affects Government policy areas such as health, stable communities and education," said the report.
Aucklanders could get much poorer as a group if the pattern continues. Young families and the elderly will be the worst affected groups if they remain barred from being able to buy a house.
Poorer people condemned to rent will need more Government benefits.
"Delayed home ownership will have implications for the level of debt households will carry through to later stages of their life cycle," said the rental report from a team led by Ian Mitchell of consultants DTZ in Wellington.
Repaying a huge mortgage at rising interest rates later in life is almost
impossible and could create financial, health, family and social problems. Home ownership levels will drop from 64 per cent in Auckland in 2001 to 58 per cent by 2016, the report said.
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Aucklanders told
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