Home ownership rates for baby boomers dips

Decreasing home ownership rates could result in higher poverty rates for the elderly in coming years, a new study of baby boomers indicates.

The study, to be launched by the Family Commission today, surveyed nearly 2000 people, aged 40-64 years, and found their home ownership rates half what they are for those currently aged over 65.

Research lead editor Charles Waldegrave said the decrease in home ownership could have a significant impact on social housing issues as the baby boomer generation became elderly.

"This piece of research was designed to address the coming demographic shift as those aged 65 and over double from 12 percent of the population to 25 percent," Mr Waldegrave told NZPA.

"The two things that protect older people at the moment in New Zealand are a combination of the level of superannuation and very high rates of home ownership."

With the Government having suspended contributions to the Superannuation Fund from last year, Mr Waldegrave said the risk for older people was greatly increased.

"You've got a group coming through that's going to double those numbers and they've got twice as many renting."

Mr Waldegrave said the situation was likely to leave many more elderly people very poor and subject to higher market rents unless there was considerably more planning for increasing home ownership, or more social housing for older people.

"It's not a threat in the lifetime of this government, it's not a threat in the next three years, but it's something that any government, of any persuasion, needs to be preparing for properly."

The study, conducted in the first six months of 2008, also highlighted gender inequalities.

Men reported substantially higher incomes and greater asset wealth, and were also more likely to live with a partner and be in fulltime employment.

Participation in leisure and recreation activities, which were usually thought of as "extras", was found to be very important to each person's sense of wellbeing, Mr Waldegrave said.

"These need to be seen as essential things," he said.

"There needs to be really good access for people to amenities and to recreational things and to their families, so that's about user-friendly public transport, safety in streets, seating places in supermarkets and public places."

Mr Waldegrave said the study was conducted with a random national sample, and was the first of its kind for this generation.

"What's important about this research is to actually see where they are at the moment, and what is coming through and what are the likely issues," he said.

"The whole idea of the research is to provide an evidence base for developing future policy."