Migrants' share of the housing market dropped slightly in the first quarter of this year, according to the latest data from Statistics NZ.
The latest dwelling transfer figures show 3636 homes were purchased by people with residence visas, but not NZ citizenship, in the first quarter (Q1) this year, accounting for 13.1% of total dwelling purchases.
That was down from a 14.0% market share in Q4 2023, making it the second quarter in a row migrants' share of the housing market has declined, after peaking at 14.3% in Q3 2023.
Prior to that, the market share of dwelling purchases by non-citizens had risen steadily from 8.2% in Q1 2020.
There are also fewer people with residence visas selling homes.
A total of 1173 residence visa holders sold dwellings in Q1 2024, making up 4.2% of all dwelling vendors, down from 4.4% in Q4 2023 and 4.3% in Q1 2023.
Migrants' share of dwelling sales has been slowly declining since Q1 2021, when it peaked at 5.1%.
In the 12 months to March this year, 16,884 homes were purchased by people with residence visas, giving them a record 13.8% annual market share.
However the above figures do not show total migrant participation in the housing market, because they exclude sales or purchases made by migrants who have obtained New Zealand citizenship.
So the total impact that migrants have on the housing market is likely to be much greater than the above figures suggest.
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13 Comments
A large driver of economic growth in this country involves bringing in migrants to build houses to sell to migrants. All around me on the shore are multi-unit sites being developed by Chinese developers with Chinese workers.
We will never solve the housing affordability problem unless we tackle the issue of mass immigration as each wave of housing completions is purchased (or rented out) to yet more immigrants.
It almost seems as though this is a problem we like to have.
"a problem we like to have" Who is "we"? There's an agenda out there, but it's not an agenda open to public discussion, or moreso, choice.
"We" in this instance are the forever-growth cultists. Without any supporting evidence whatsoever I think it includes most people.
It includes my dear 84 year old mother who says we need a large population so we can have a train system like London's. I roll my eyes and tell her that if we don't have a large population, we don't need a train system like that. She remains unconvinced.
Growth seems to be something most people want without questioning the implications. Negative consequences of growth are to be remedied with yet more growth.
With regard to immigration and housing, more immigrants will require more housing that will require more immigrant housebuilders.....and so on. And as the congestion grows, mum's train system might well eventuate after all.
Migration is the key fuel for both our pension pyramid & property pyramid schemes. Migrants pay a lot of tax both paye & gst and receive few benefits in return. From a short term cost/benefit perspective the benefits of high migration exceed the costs significantly. They are what allows the accounts of NZ ltd. to keep its books balanced and for the current system to maintain itself. If we cut back migration to say 10,000 we would need additional taxes to fund our services (basically a CGT) and/or raising the pension age to 68-70. Or we could means test the pension. Good luck getting this past the baby boomers.
To keep the books balanced?
Hate to be the one to break it to you but our books haven't been balanced for 50 years.
Is it then necessary to point out, immigration as the policy is practiced in NZ is a complete fail.
The books can never balance in a flexible fiat debt-based system.
you say “Migrants pay a lot of tax both paye & gst and receive few benefits in return”- yeah right – we hand out temporary and permanent residency like confetti – giving free education, free medical, gold cards for the over 65s, etc etc. And I doubt we will ever know but how much of the grey economy exist in migrant communities meaning they do not in fact pay all that tax that you are so grateful for?.
Interesting data. Not sure how long it has been collected, but a graph showing the longer term trends would be really helpful for context
Does not seem that they will save the housing market the? maybe they will help the rental market ....
"maybe they will help the rental market ."
More immigrant persons per residential dwelling to combine more individual incomes to meet the rising rent?
Or they will live in residential dwellings that have since been converted to boarding houses perhaps?.
So if FHB are 25% of the market, then migrants are 56% of the FHB group (assuming recent migrants are buying their first home in NZ). Which would confirm a recent article that stated 60% of FHB taking out the KO grants and FHB loans were recent immigrants.
Eventually the pool of 210,000 immigrants that Jacinda conferred residency on in 2021 will be exhausted - at the moment its like a snake digesting a pig.
The most treasonous act by a politician in some time!
I wonder what % of the recent migrants are in co-own mortgage arrangements?
Ie. 3-4 parties pitching in to buy a place?
on ‘typical’ migrant salaries, and current mortgage rates, I doubt that many singles or couples could afford to buy. But throw together 3-4 x 60-70k salaries and it’s a different story?
Is there any data out there that shows how many co-own mortgages are being issued?
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