Kiwis drowning in debt in out of control housing market

New statistics reveal Kiwis are taking on record levels of debt in order to get into the housing market, as prices continue to outstrip incomes, says Labour’s Housing spokesperson Phil Twyford.

Stats NZ has today revealed real estate loans now make up a whopping 87% of all individual debt.

“Kiwis are drowning in debt as even middle income families mortgage themselves to the hilt to get a foothold in a runaway housing market.

“Hundreds of thousands of Kiwi families are sending an ever increasing portion of their income to the Aussie banks each week, leaving them with less to live on.

“They are so indebted that for many even a slight increase in interest rates could send them underwater.

“According to the Reserve Bank, since National came to office, housing debt has grown from $161 billion to $223 billion. This is an increase of $62.5 billion or 39 per cent. We’ve got to do better.

“National’s reckless refusal to intervene in a runaway housing market is putting Kiwis’ financial wellbeing at risk.

“For eight years, National has sat on its hands and let the housing crisis get worse and worse. Only Labour’s plan to build new affordable homes and crack down on property speculators can fix this crisis,” says Phil Twyford.