17 February 2016

Student debt killing hopes of home ownership

New analysis shows the home ownership rate among Kiwis under 40 has plummeted since student loans were introduced, putting long-term financial security at risk and shutting a generation of New Zealanders out of the Kiwi dream, Andrew Little says.

“Three quarters of New Zealanders under 40 now don’t own a home, many of whom have given up on ever buying a house as they continue to pay down loans well into their mid-life.

“Before student loans were introduced the home ownership rate for under 40s was at 57%. Now it’s just 25%, meaning hundreds of thousands of Kiwis are missing out on the long-term financial security of owning their own home.

“Next month total student debt will reach $15 billion, a burden which is strangling the future of our young people and which will have a serious impact on New Zealand’s economic future.

“Yet John Key’s government continues to insist that student debt has no effect. These housing figures prove just how out of touch the Prime Minister is.

“Investing in free post-school education is an investment in New Zealand’s economy. Denying generations of Kiwis the opportunity to buy a home, raise a family and retire in comfort is a legacy no Government should be proud of,” Andrew Little says.

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