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Kiwis hit by high mortgage and rent costs

NZ Newswire logoNZ Newswire 2/12/2016
<p>Pic for representational purpose</p> © Getty

Pic for representational purpose

An increasing number of Kiwi households are spending a major chunk of their incomes on mortgages, rent and utility bills.

Statistics NZ's latest report into Kiwi budgets found 31.3 per cent of all households now spent more than one-quarter of their budgets on housing expenses, up from around 25 per cent of households in 2007.

It comes as average weekly household spending also climbed by $190, or 17.1 per cent, in the past three years to $1300 a week.

Housing costs, including mortgage and maintenance payments, rent, property rates and power bills, contributed most to this increase, rising by $61 per week on average.

Rising food and vehicle costs also played their part. Not only did New Zealand households spend more in 2015/16 on eating out than three years earlier but more families were buying cars.

The average weekly amount households spent purchasing vehicles increased from $48 three years ago to $75 in the latest financial year.

On the plus side, average household incomes increased by 11.7 per cent since 2013 to an annual before tax amount of $95,898.

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