Skip site links.

• Home |
• Site help |
• About us |
• Contact us |
• Accessibility

Research and Policy

Skip section sub links.

Back to previous section.

• Summaries of reports
  • The Housing Innovation Fund Outcomes Evaluation
  • The Healthy Housing Programme Outcomes Evaluation
  • Quarterly Housing Sector and Housing Assistance Monitoring Report
  • Community Renewal
  • Home Ownership
  • Accommodation Supplement - April 2007
  • Energy Efficiency and House Usage in Fordlands - April 2008
  • Housing Needs - 2006
  • Future Scenarios for Social and Affordable Housing - February 2009
  • Supply of Essential Services to Sub-standard Housing in Northland East Cape and Bay of Plenty (NECBOP) - October 2007
  • Maori Housing Trends Report - September 2008
  • Sustainable Communities and Economic Development Research - September 2008

Research and Policy

Maori Housing Trends Report - September 2008

The purpose of the Maori Housing Trends Report 2008 is to provide an evidence base to inform the development of housing policy. The research provides an overview of Maori population dynamics, examines current Maori housing trends, and considers the implications of likely population change for future Maori housing needs. In June 2007, Maori are the Corporation's largest applicant group (8,981 total applicants) and the second largest occupant group (73,757 total occupants). The housing analysis shows that the proportion of the Maori population living in crowded households is declining. Different indicators show a recent improvement in regard to housing assistance and affordability. However, Maori home ownership is declining and the proportion of Maori households who rent is increasing. The Corporation can anticipate that its Maori customer base will show ongoing demand for larger houses, and increase the demand for housing appropriate for single parent families, housing for Kauma-tua, and housing in rural areas.

Overview

The Maori Housing Trends Report 2008 updates last year's Maori Housing Trends Report, which informed the development of the Maori Strategic Plan: Te Au Roa. The 2008 report provides an evidence base for the Maori Strategic Work Plan Programme in 2008-09.

Research purpose and approach

The purpose of this research is to provide an evidence base to inform the development of Ma - ori housing policy. The Ma - ori Housing Trends report provides an overview of Maori population dynamics, examines current housing trends and outcomes for Maori, and considers the impact of future population change on Maori housing trends. This report draws on existing data sets and research results. Primary data collection was not part of this exercise.

Recently, the way in which government agencies are required to collate, and report on, ethnicity data has changed. In the past, individuals who identifi ed with more than one ethnic group had one response prioritised and reported. This is referred to as the New Zealand Standard Classifi cation of Ethnicity. As a result of the Statistics New Zealand 2005 Ethnicity Standard, ethnicity data now reports multiple responses, referred to as 'total response data'. This means that individuals who have reported more than one ethnic group will be counted once in each ethnic group they identify. Therefore, the total number of responses for all ethnic groups may be greater than the total number of people who stated their ethnicities (and may add to more than 100 percent). Because this is a recent development, total response data is not readily available for all data sets used in this report. Where possible, the new 2005 Ethnicity Standard was applied.

Key Points

• In 2004, 20 percent of Maori households had housing costs in excess of 30 percent of their income. This is a drop from just over 30 percent in 2001. For the fi rst time since the mid 1980s, this housing affordability figure for Maori was comparable to that for European.
• In June 2007, Maori are the Corporation's largest applicant group (8,981 total applicants) and the second largest occupant group (73,757 total occupants).
• Between 1991 and 2006, the Maori home ownership rate fell disproportionately compared to that of European households. The Maori home ownership rate fell approximately 16 percent, the European home ownership rate approximately 11 percent.
• The number of Maori recipients of the Accommodation Supplement was 67,000 in 2007. The proportions of Maori recipients who were boarding (30 percent) was twice that of European recipients (15 percent).
• Between 2001 and 2021, the Maori population is expected to grow by 29 percent. The greatest numerical increase in the Maori population will be in the Auckland region, followed by the Bay of Plenty and Waikato regions.
• The number of Maori aged 65+ years is projected to increase three-fold from 20,000 in 2001 to 57,000 in 2021. It is estimated that in 2021, one third of Maori aged 65+ years will require rental housing (of which nine percent is expected to be from the Corporation).
• Maori are likely to make up a growing proportion of the Corporation's customer base.
• The Corporation can anticipate that its Maori customer base will show ongoing demand for larger houses, and increase the demand for housing appropriate for single parent families, housing for Kauma - tua, and housing in rural areas.

Findings

Key features of the Maori population

Maori currently make up 15 percent of the total population. Most Maori live in one family households with children. However, Maori are more likely than other ethnic groups to live in households that include more than one nuclear family. The majority of Maori live in urban areas, with almost one quarter of the Maori population living in Auckland.

Maori have relatively high rates of mobility, and rates have been increasing over time. Maori most commonly identify social reasons (mainly to be closer to family) as the main motivation for moving. Economic and housing reasons were the next most common motivations for Maori migration. For European, economic considerations, followed by environmental and social reasons, were the most common motivations for moving.

Between 2001 and 2006, the socioeconomic status of Maori improved. Increasing proportions of Maori obtained higher educational qualifications, the proportion of Maori with an income of more than $30,000 increased, as did the median income ($20,900 in 2006 up from $14,800 in 2001), and Maori unemployment steadily fell (to 7.7 percent in 2007). Notwithstanding these improvements, some 40 percent of the Maori population still do not hold a formal qualification, and the Maori unemployment rate is three times the European rate.

Housing supply

Crowding is a key indicator of housing supply. The proportion of the Maori population living in crowded housing declined from 35 percent in 1986 to 23 percent in 2006.

Housing assistance and affordability

Housing is fundamental to the health and wellbeing of families and communities. In line with trends for the total New Zealand population, housing is less affordable for Maori than it was 20 years ago. In 1988, only eight percent of Maori households were paying more than 30 percent of their income in housing costs. By 1997, this figure had increased to 32 percent. Since then, this figure has declined. For the first time since the mid 1980s, in 2004 housing affordability for Maori households was comparable to that for European households. However, housing affordability remains an issue, with one in five Maori households recording housing costs in excess of 30 percent of income in 2004.

In 2007, some 67,000 Maori were receiving housing support through the Accommodation Supplement, accounting for 27 percent of all Accommodation Supplement recipients. The proportion of Maori Accommodation Supplement recipients who were boarding (30 percent) was twice that of European recipients (15 percent). Compared with European and Pacific recipients, the proportion of Maori recipients who own their own home is relatively small. This may signal low levels of awareness among Maori home owners about their potential eligibility for the Accommodation Supplement. Between 2003 and 2007, there has been an 11.6 percent decline in the number of Maori Accommodation Supplement recipients. This decline aligns with increased strength of the labour market and improvements in Maori employment status.

Maori make up a significant portion of the Corporation's customer base. Figure 1 shows that in June 2007, 73,757 Maori occupied Corporation houses. This was the second largest group of occupants. Maori were the largest applicant group, with 8,981 total applicants.

This figure is based on Total Response Data. Therefore, occupants who identify with more than one ethnicity are counted once in each ethnic group they identify with. The total number of responses of 215,871 presented in this figure was based on 197,687 occupants.

Source: Housing New Zealand Corporation, Administrative Data, June 2007

Over the past 15 years, the most striking trend in Maori housing has been the on-going decline of home ownership rates. Since 1991 the proportion of Maori who own their home has fallen from 61.4 percent to 45.2 percent in 2006 (Figure 2). Between 1991 and 2006, the Maori home ownership rate fell disproportionately faster than that of European households. The Maori home ownership rate fell approximately 16 percent, and the European home ownership rate fell approximately 11 percent.

Figure 2. Proportion of people who owned their own home by selected ethnicity 1991, 2001 and 2006

Source: Census 1991, 2001 and 2006, Customised data prepared for HNZC

Rental tenure

Between 1991 and 2006, there has been a significant increase in the proportion of Maori in rental tenure (from 38.6 percent to 54.8 percent), which corresponds to the decline in home ownership rates. Maori are more likely than European not to own their own home, regardless of income and age.

Currently there is no quantitative information on the quality of housing occupied by Maori. However, the issue of substandard or poor quality housing for Maori in rural and urban areas has been recognised for some time. Recent qualitative research on Maori housing experiences (Waldegrave et al., 2006) found that rural renters were more exposed to poor property conditions, lower levels of maintenance, and less choice. Furthermore, proximity to wha-nau was a crucial determinant of where people preferred to live, in both rural and urban areas. In the cities, Maori often accepted lower grade housing to be close to their families, rather than better housing in a suburb further away.

The Maori population is expected to grow by 29 percent between 2001 and 2021. By comparison, a 19 percent increase is projected for the non-Maori population over the same period of time. The younger age structure of the Maori population means that there is a built-in momentum for further growth. There will be a significant growth in the working age population. The greatest numerical increase in the Maori population will be in the Auckland region, followed by the Bay of Plenty and Waikato regions.

The Maori population will age in the coming decades, with the median age projected to increase by five years between 2001 and 2021. The number of Maori aged 65+ years is projected to increase threefold from 20,000 in 2001 to 57,000 in 2021. As a proportion of the total Maori population, this age group is projected to grow from three to eight percent. It is estimated that in 2021, one third of Maori aged 65+ years will require rental housing, of which nine percent is expected to be from the Corporation. In comparison, only 19 percent of European aged 65+ years are expected to require rental housing, of which approximately three percent is expected to be from the Corporation.

Implications for policy development

Over the next 10 years, Maori housing needs will differ from the needs of the European population. The key demographic drivers of Maori housing need will be: projected growth in the size of the Maori population, the expected continuation of larger Maori family sizes, potential growth in the number of single parent families, growth in the number of Kauma - tua, and internal migration.

Housing supply

Demand from Maori for housing can be expected to increase as the Maori population expands. Growth in the number of Maori will accentuate pressure on housing supply, especially in Auckland where one quarter of the Maori population is expected to continue to reside. Housing supply stress is also likely to increase in regions such as the Bay of Plenty and Waikato, where the projected numerical increase in the Maori population is the second and third highest.

Maori household crowding is likely to remain relatively high as a result of larger size households, on lower incomes, paying higher rents. This will be exacerbated by high house prices and housing affordability pressure, particularly in urban aeas.

Assistance and affordability

Over the next 10 years, Maori are likely to make up a growing proportion of the Corporation's customer base, and this will be more pronounced in some regions. This trend has implications for the Corporation's capability, staffing and approaches to service delivery. The findings of this research suggest that the Corporation can expect an ongoing demand for larger houses, and an increase in demand for housing appropriate for single parent families, housing for Kauma - tua (either as primary tenants or as part of extended family households), and housing in rural areas.

The increase in the proportion of Maori in rental tenure from 38.6 percent in 1991 to 54.8 percent in 2006 has been striking. Consultation and research has found that while many Maori still strongly aspire to own their home, this aspiration is difficult to realise because a high proportion of Maori live in urban areas where housing pressure is most intense or in coastal areas where land and real estate prices are premium. Consequently, in the short term at least, home ownership will continue to be beyond the reach of many Maori.

Trends in fertility suggest that Maori will continue to start families earlier than European and have larger families. This means that in the earlier stages of family formation, Maori will be less likely to be able to accumulate sufficient resources to buy a house, and in the later stages, the cost associated with larger families means they will have less disposable income to save for home ownership.

While there have been gradual improvements in the educational, employment and income status of Maori over the past 10 years, the level of improvement is unlikely to offset the challenges presented by the current housing market.

The design of future policies regarding Maori home ownership needs to address:

• financial barriers
• aspirations, knowledge and information/support
• impediments to Maori utilising multiply owned land for housing.

Further Information

This summary is based on the report: Maori Housing Trends 2008. Housing New Zealand Corporation (May 2008).

Other related reports include:

Maori Housing Experiences: Emerging Trends and Issues. Prepared for the Centre for Housing Research, Aotearoa New Zealand and Te Puni Ko - kiri by Waldegrave, King, Walker, and Fitzgerald (October 2006).