A home with a backyard is still desired by many New Zealanders

Property

Westpac commissioned survey suggests many New Zealanders still pine for the quarter acre dream when it comes to their homes

28th May 19, 10:41am by Gareth Vaughan

Many New Zealanders still pine for a home with a backyard despite the densification and rise of apartment living in some of our major cities, a Westpac commissioned survey suggests.

The Nexus Planning & Research survey of 1,008 people aged 18 and over shows 49% consider a backyard essential when buying a home, and another 42% think one would be nice to have.

“It’s interesting to see that people consider having a backyard much more important than living close to work, public transport, parks or schools,” says Westpac's Robert Hill.

“Owning a home with a nice backyard has traditionally been central to the Kiwi dream, and the recent rise in house prices and increase in apartments doesn’t seem to have dented that.”

Not surprisingly those living in cities are more prepared to give up a backyard than those in smaller centres, according to the survey. Of survey respondents 39% of Aucklanders and 43% of Wellingtonians view a backyard as essential, compared to 64% in the regional South Island and 57% in the regional North Island.

“City dwellers appear more willing to sacrifice a backyard to live in the big smoke and it will be interesting to see if that trend continues as more apartments and townhouses come on to the market,” says Hill.

Among first home buyers 55% of respondents consider a backyard essential, ahead of 31% who think a modern kitchen is essential and 28% who think a modern bathroom essential.

“Clearly people looking to get on the property ladder are taking the attitude that you can always improve and expand your home, but you can’t expand your section,” Hill says.

Most survey respondents also prioritise safety and security over luxury home features. And, not surprisingly, 85% say a warm, dry home is essential, while 70% would choose an area with a low crime rate.

Meanwhile, 65% of survey respondents think a lock-up garage is essential to a property, 56% say privacy from their neighbours is essential with another 42% believing it would be nice to have.

When choosing the area where you purchase you next home for you to live in, which aspects are essential, nice to have or nor important to you?

	Essential	Nice to have	Not important
Safety (low crime rate)	70%	29%	2%
Safe from environmental risks	63%	33%	4%
Safe from climate change risks	61%	31%	8%
Quiet	57%	40%	3%
Access to public transport	28%	46%	26%
Close to schools and/or childcare	22%	27%	51%
Close to parks/recreational facilities	21%	63%	16%
Proximity to work	18%	49%	33%
Social hub (eateries and bars)	11%	53%	36%

Are each of the following features essential, nice to have or not important to you?

	*Essential*	*Nice to have*	*Not important*
Warm and dry	84%	15%	1%
Within budget	83%	16%	2%
Backyard	49%	42%	9%
Modern bathroom	47%	48%	4%
Modern kitchen	46%	48%	6%
Good investment potential	40%	45%	15%
Move in ready (no renovation required)	37%	51%	11%

Which of the following features are essential, nice to have or not that important to you?

	*Essential*	*Nice to have*	*Not important*
Lock-up garage	65%	31%	4%
Storage areas	60%	38%	2%
Off-street parking	57%	36%	7%
Privacy from neighbours	56%	42%	2%
En-suite to the master bedroom	37%	50%	13%
Outdoor entertaining area	36%	54%	9%
Single level	34%	37%	29%
Study	19%	55%	26%
Environmentally friendly	18%	67%	15%
Swimming pool	6%	24%	71%

Westpac commissioned Nexus Planning & Research to conduct the survey. Some 1,008 people aged 18 and over who identified as home owners, property investors, or people planning to buy their first home in the next two years were surveyed in March and April this year. The survey has a margin of error of plus or minus 3%.

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23 Comments

by Davo36 | 28th May 19, 10:54am 1558997651

30 years ago anyone/everyone could afford a quarter acre section. On 1 income.

Middle class people (i.e. not rich, but comfortable) could afford a bach by the beach (or snow) as well! 2 houses on 1 income!

Now both in the couple have to work to afford to rent a small apartment... Whilst trying to save for a house/apartment which is 10 times 1 salary (in Auckland).

So we've stuffed things up a lot I reckon.

by RickStrauss | 28th May 19, 12:37pm 1559003878

30 years ago people also reaped the affordability benefits of post-war housing support efforts from various governments over the decades. Then all was forgotten and we all hailed neo-liberalism and forgot about the role of society in supporting housing affordability.

by theglc | 28th May 19, 1:26pm 1559006771

yes we've been fooled into thinking that sending both parents to work at the expense of the family unit would make us wealthier. It didnt!

It has just pushed up house prices and left a lot of children hardly seeing their parents during the week.

Seems our greed got the better of us.......................

by Korki | 28th May 19, 5:38pm 1559021909

Ya reckon? 30 years ago is 1988. I was in school in a very middle class town on fringes of Auckland, and went to a semi- private school and I'd say maybe 20% at the most had baches. But granted nearly all families the mother stayed at home.

by xingmowang | 28th May 19, 10:59am 1558997987

NZer's value of per hour worked has been declining or been stagnant relative to other people's around the world.

Hence, certain things are getting less and less affordable.

by CJ099 | 28th May 19, 1:30pm 1559007026

Property only get less affordable if there are other buyers distorting the market and pushing out of local 'wage earners' reach. They don't just get magically more expensive. Hence why a lot of property markets are now dropping including our own in cities that were strongly influenced by external buyers that are now gone.

Here's a an example from Sydney's property market: Selling agent Catherine Murphy of The Agency North said Epping was a perfect example after she sold a house for $1.258 million – just $8000 more than when it last sold in 2015.
“There are young families and young couples that are buying again when they simply couldn’t compete at all,” Ms Murphy said.
She said vendors who were selling in this current market were doing so out of necessity despite trying to get 2017 prices.
“It’s like saying I want to sell my Holden for $100,00 to buy my Ferrari. No one cares,” Ms Murphy said.

Domain article: https://www.domain.com.au/news/the-sydney-suburbs-you-can-buy-property-…

by Nzdan | 28th May 19, 11:38am 1559000314

That's what triggered our move to the Wairarapa. A house with a back yard, just under 1/4 acre for 3 x my salary. Our mortgage should be gone in 7 - 10 years (I'm early 30's) unless the wife decides to upgrade before then.

by powerdownkiwi | 28th May 19, 11:59am 1559001576

If she decides to upgrade it'll be his problem then, right?

by Houseworks | 28th May 19, 9:44pm 1559036677

Way to go mate, less financial stress and more time with family

by Nzdan | 29th May 19, 8:17am 1559074642

Heh, well, not when you factor in the 4 hours out of my day to commute to the office and back. But I do work for a great employer, who has since provided me with a laptop so I can work from home on the odd day.

by CJ099 | 28th May 19, 12:12pm 1559002368

They may well be able to afford their dream home with back yard even in the Auckland area in the next few years as house prices fall to meet the wage earning market now that Foreign Buyers and AML regulations are in place. If you don't think that markets can swing back that fast, I suggest you take a look at what's happening over the pond, where they were also effected by the same property market distortions.

Domain article: The Sydney suburbs where property prices have slipped back to 2015 levels
https://www.domain.com.au/news/the-sydney-suburbs-you-can-buy-property-…

by Theone | 28th May 19, 1:07pm 1559005667

Mr Oliver said a lot of the unit price falls occurred in the suburbs with high supply.

“Those areas that were most exposed to supply would be more vulnerable, and that could affect the unit [prices] in those areas or houses [too].”

...and that is the key difference from Sydney to Auckland = oversupply! We don't have an oversupply issue in Auckland like Sydney we have a lack of confidence.

by CJ099 | 28th May 19, 1:43pm 1559007837

Auckland does have an unaffordability problem within the more expensive suburbs, we're already starting to see the tipping point which will like to really manifest it self next Spring (Not that long away). When more property will surge on to the market on top of a stagnant unsold property listings.
Two years is the maximum time that a market can remain stagnant for until prices start to slid downwards. Auckland's selling peak was in late 2017.
You only have to look at the auction results to see that property isn't selling in these areas and if they do it's usually at a lower CV price.
Sellers may try to hold out for better buyers but they simply aren't there for the million dollar homes, so whether we have an oversupply or not is fairly irrelevant in such a vastly over priced market.

by Theone | 28th May 19, 2:05pm 1559009143

Supply/demand is an economic fundamental and is never irrelevant. The current issue is confidence which drives demand, this always ebbs and flows, no disputing that it is very low currently.
Sydney prices even at 2015 levels are very high relative to income and always will be, same here for Auckland. Its the price Aucklander's now pay being an attractive place to live. Look at the survey of top citys in the world to live and Auckland features in most of them, any City on the list are expensive to incomes.

Short term prices look like they will continue to fall when then will level off or start to raise is anybody's guess, time will time. But we have been here before with big increases followed by pauses, last GFC 08-12 then look at 12-17 and then 17-?

by CJ099 | 28th May 19, 12:31pm 1559003488

I'm surprised that Kiwi's and Australian's tend to dig their heels in and don't want to commute longer than 20mins. I think younger generations are starting to consider commuting a lot more which would be to their advantage especially in very larger cities like Auckland. If you're prepared to do a 40min commute in to the CBD you'll be able to find much more affordable property that ticks most of the boxes above. That's what we did and it's not so bad if you do most of the commute by train.

by theglc | 28th May 19, 1:27pm 1559006871

In the near future it wont matter, most office workers will be able to work from home

by powerdownkiwi | 28th May 19, 1:36pm 1559007397

If those of us who measure real stuff have it right, they will indeed be at home and will indeed be working.

But my bet is that it will be in the backyard veggie garden.

by Lapun | 28th May 19, 2:55pm 1559012123

It depends on the commute. In London I worked with a poorly paid middle aged secretary who commuted from Brighton - expensive and took an hour on a fast train - however an hour sitting on a comfortable seat reading is not unpleasant. These days she could be using her tablet or phone for entertainment or learning. It is sitting in traffic or squeezed and often standing on a bus or train that makes commuting hell.

by Pragmatist | 28th May 19, 6:04pm 1559023462

Fine if you are a city based paper pusher.. complete waste of time for many real workers. Auckland public transport is rubbish if you want to go anywhere other than the CBD/major centers generally. I have a 10-15 minute drive, or an hour and two buses to choose from. Not hard to see that driving is going to win.

by ngakonui gold | 28th May 19, 1:38pm 1559007510

Sending the kids off to the local park to play is no longer a viable option.

by waymad | 28th May 19, 4:37pm 1559018223

Oh, these naughty, naughty Deplorables. They clearly have not taken to heart the Narrative that living up in the air, in Modest if not actually Tiny Apartments, is the Way of the Future.

Preferences, once again, Trump Plans......

by Fritz | 28th May 19, 11:37pm 1559043449

I'd love to see the full report.
Interesting that only 57% saw off-street parking as 'essential'. This would suggest, at face value, that there might be a reasonable number of people willing to consider living in a home without it.
That goes against the 'conventional wisdom' that says that there is almost no market for housing without off-street parking....
I went to Westpac's website and couldn't find the study.

by Dale Smith | 29th May 19, 5:04am 1559063040

It can sometimes be hard to see behind the numbers.

While only 57% said it was essential, once you add in 'nice to have; then it is over 90%. Plus if you have already answered the' lock up garage' question, then you could be thinking as the 'off-street parking question' as being for the second/third or visiting friends car parking.

Also the lock up garage question will be influenced by whether you see the 'lock up' being used for a vehicle, or for general household storage/workshop/laundry etc.

But I think the main point that is highlighted is we are still building the wrong type at unaffordable prices. So we have an oversupply of wrong type, and an undersupply of right type.