Increasing proportion of households consider their income is ‘not enough’ or only ‘just enough’ to meet everyday needs, according to Statistics NZ

Three in five lower income households that make rent or mortgage payments spent at least 40% of their income on housing costs, according to the latest data from Statistics New Zealand.

And one in 11 people living in New Zealand are experiencing “material hardship”.

An increasing proportion of households consider their income is not enough or only just enough to meet everyday needs like accommodation, food and clothing, Statistics New Zealand household financial statistics spokesperson Victoria Treliving says.

On Thursday, Statistics New Zealand released its child poverty data, and household incomes and housing cost statistics.

Of the households surveyed, 40.6% perceived their income as either ‘not enough’ or ‘only just enough’ – up from 38.5% the previous year.

And the data shows that in the 12 months ended June 2025, 9.1% of people were living in households in material hardship.

A household is considered in material hardship if it lacks seven or more of 18 items that people regard as essential. This includes putting off going to the doctor, having to buy cheaper or less meat, and being unable to afford a computer of internet at home.

When it comes to this data, Statistics NZ has replaced its Household Economic Survey with a Household Income and Living Survey. About 17,900 households were interviewed from July 2024 to June 2025. Households were asked about their financial situation in the 12 months prior to the interview, so the statistics covers information reference two years from July 2023 to June 2025.

The latest figures show household income increased at a slightly higher rate than housing costs in the year ended June 2025.

Average weekly household disposable income increased to $2077.70 from $1977.70, up 5.1% from the previous year (not adjusting for inflation).

Housing costs also increased between June 2024 and June 2025 for households with housing expenditure, Statistics NZ says, with the average weekly cost for housing increasing from $457.90 to $478 – up annually by 4.4%.

Treliving says while household income increased in the year ended June 2025, increasing housing costs meant households were spending a similar proportion of their income on housing as the previous year.

Treliving says $22.30 per $100 of disposable income was spent on housing costs in the year to June 2025. In the previous year, this was $22.50.

For people, in the year ending June 2025 compared with the previous year, average annual household equivalised disposable income (before housing costs) increased to $63,700, that's up 5.3% from $60,521.

Renters

Renters spent an average of $505.50 on rent payments. Their average weekly rent payments went up 9%, nearly the same as the year before which was 8.8%.

Statistics NZ says 55.2% of renters surveyed considered their income was ‘not enough’ or ‘only just enough’. In the year to June 2024, this was 55.4%.

Households with mortgages

Total mortgage payments increased 4.9% over the year for homeowners with mortgages, Statistics NZ says.

Interest payments were the main contributor to this increase – going to $452.10 per week in 2025 from $423.40 per week in 2024.

Principal repayments didn’t change and was $252.60 per week in 2025.

Out of the households surveyed that were making mortgage payments, 38.9% thought their income was ‘not enough’ or ‘only just enough’ to meet everyday needs (food, clothing and accommodation are some examples of these needs). This was 34.6% in the previous year.

Lower income households

Of lower income households, those with a disposable income under $72,600, 60.6% of mortgage holders and 57.7% of renters spent at least 40% of their income on housing costs.

“Housing affordability remained challenging for lower income households in the year ended June 2025,” Treliving says.

“Three in five lower income households making rent or mortgage payments spent 40% or more of their income on housing costs.”