Photo: 123RF
Working from home might not be Public Sector Minister Nicola Willis' favourite thing - but it could be partly behind an increase in home ownership.
Stats NZ reported on Thursday that the number of households who own their home increased in the latest census.
It was the first lift in ownership recorded since 1991 - 66 percent of households are homeowners, up from 64.5 percent in 2018.
It was still below the almost 74 percent in 1991.
Infometrics chief executive Brad Olsen said there were a few possible reasons for the increase.
"Affordability is quite challenging at the moment but we saw improving mortgage affordability in 2019 and definitely in 2020 and part of 2021. Then unaffordability started to come back into the system in 2022 and 2023.
"When interest rates got to that lower position, it really allowed a number of people - more than otherwise - to get into the housing market with those low interest rates."
He said Infometrics analysis showed that the proportion of pay that had to go on to the first year of a mortgage had, on average, declined between 2019 and 2020 before lifting again.
He said the increase in people working from home had also boosted homeownership in city fringe areas.
"Not so much the city itself but areas like Waimakariri, Selwyn - and around the wider Wellington region. We've had a combination of better mortgage affordability coupled with the work-from-home element that was supportive in the short term."
Olsen said he was not confident that the trend would continue.
Westpac chief economist Kelly Eckhold said the increase in construction of smaller, cheaper homes would have helped more people into homeownership.
"First-home buyers have been active. You normally might expect investors to have a more prominent role and if the housing market picks up that's what you might expect to see."
Infometrics chief economist Kelvin Davidson said he was surprised that Stats NZ said it was surprised by the increase.
"There have been a lot of first-home buyers lately. Market conditions in general have favoured first-home buyers and they've been a decent share of activity. It's been tougher for investors. That's the fundamental thing."
He said part of that had been driven by lower interest rates, but they would also have helped investors.
"It has to be broader than just low interest rates. They have had access to KiwiSaver, they've been really tapping into those low-deposit lending allowances of the banks. Getting into the market with a low deposit as an investor has been almost impossible lately."
There had been more houses to buy, he said, and having new builds exempt from many lending rules had made them a target for buyers.
Davidson said 66 percent was still comparatively low and could be improved upon.
If the government was able to increase housing supply, that would help, he said.
He said the five years from 2018 to 2023 were a "crazy period".
