The recent Welfare Expert Advisory Group report which strongly links intergenerational poverty with home ownership is
comes as no surprise to global shelter charity, Habitat for Humanity New Zealand.
It is now harder than ever for low and moderate income families to access home ownership. The Welfare Expert Advisory
Group report highlights how our system of support assumes that families will eventually own their home, mortgage-free
upon retirement. “This is simply not the case for many New Zealanders now.” Says Mr Alan Thorp, Deputy CEO Habitat for
Humanity New Zealand. “The median net wealth for Māori as of last year is $29,000 compared with $138,000 for European
New Zealanders, so we know that the negative effects of not owning your own home disproportionately affects Māori.”
The Progressive Home Ownership model is a proven pathway to home ownership for low and moderate income families. For
over 25 years, Habitat for Humanity New Zealand has assisted 500 families into home ownership across the country,
permanently changing their future. “Of the families that we service around half of them are Māori. Our programme has
been very successful, with families able to not only improve their immediate situation, but improve the future prospects
for their children and grandchildren” says Mr Thorp.
Habitat’s progressive home ownership programme has not only supported families in urban areas, but has also worked with
whanau who have built on Papakainga – collectively owned Māori land. “The success of Progressive Home Ownership lies in
its holistic approach: an affordable home, a period of stable rental and accompanying support services, the subsidy it
requires, and most importantly partnership with a family who is willing to engage and has the potential to maintain a
mortgage” says Mr Thorp.
The government is has only adopted a small number of recommendations from the Welfare Expert Advisory Group report. One
recommendation that the Habitat hopes the government will implement is progressive home ownership.
“An investment in this type of programme will not go to waste. In all our years of working with thousands of families,
we have seen how a decent, stable home and the right kind of support for a family on low incomes can end
intergenerational poverty. It works out to be much more cost effective in the long run” explains Mr Thorp.
Groups representing Māori interests are also supporting the push for progressive home ownership. The Independent Māori
Statutory Board has publically shared its support for the programme, as well as incorporating it as recommendation in
their recent Kainga Strategy for Auckland’s Urban Māori.
“The inequality in housing outcomes – particularly between Māori and non-Māori does not need to remain our normal any
more. There are tools available to address this and one way is through progressive homeownership” says Mr Thorp.