Senior Citizens and the Housing Market in New Zealand
TL;DR
Rapidly ageing population: Stats NZ projects about 1 million Kiwis aged 65+ by 2029 (roughly 1 in 6 people now, rising to about 1 in 5 by the mid-2030s) (RNZ)
High home ownership among seniors: Approximately 86% of people aged 65 and older lived in owner-occupied homes in 2017–18. Overall home ownership rose to 66.0% in Census 2023 (up from 64.5% in 2018), office for seniors.
Mortgage trends: Fewer seniors are mortgage-free. For example, only about 38% of 55–64-year-olds are mortgage-free (Retirement Commission analysis; widely cited in 2024–25 reporting), a sharp decline from 60% in 1992. Many new retirees still carry mortgage debt, which puts pressure on their finances (Analysis cited by the Retirement Commission indicates that more than half of superannuitants who still pay a mortgage spend over 80% of NZ Super on housing costs).
Senior-friendly housing: Government research shows that 79% of older Kiwis say their home is warm and dry, compared to only 62% of the overall population. This suggests most seniors live in relatively comfortable, well-maintained homes. Most (over 94%) also rate their home and its location as “suitable” for their needs.
Retirement living stock: Approximately 41,100 units house around 54,000 residents nationwide as of December 2023; recent completions average around 1,700–2,300 units per year, depending on the period.
Staying or downsizing: Many seniors choose to stay put due to strong community ties, but others opt to downsize or move closer to family and support. Age Concern NZ notes that downsizing to a more manageable home (or one closer to friends/family) can help maintain independence, even though moving can be stressful at first. Home adaptations and “universal design” (e.g., grab bars, stepless entry) can also enable older owners to live comfortably for longer.
Government support: Older owners can access help, such as the Rates Rebate or NZ Super pension. Some consider a reverse mortgage as a means to supplement their income while staying in their home. It’s wise to seek independent financial and legal advice on options like these.
Demographic Trends and Projections
New Zealand’s population is ageing quickly. RNZ reports that the number of people aged 65 and above is growing by over 500 per week and is expected to reach 1 million by 2029 (RNZ). In concrete terms, about one in six New Zealanders is currently over 65, climbing to around one in five by the mid-2030s. This demographic shift means more retirees are navigating property decisions (downsizing, selling the family home, or moving to retirement housing). Notably, Stats NZ projects that 265,000 or more people aged 65 and above will still be in the workforce by 2030 – reflecting that many seniors remain active and contribute to the housing market as both buyers and sellers.
Home Ownership, Debt and Finances
Historically, older Kiwis have very high home ownership rates. Government surveys (2017–18) showed ~86% of those 65+ owned their homes(office for seniors) (much higher than younger age groups). Overall, 66.0% of NZ households owned or partly owned their dwellings in 2023 (stats). However, the nature of ownership is changing: fewer incoming retirees are debt-free.
For example, the share of 45–64-year-olds with a mortgage fell from 60% (in 1992) to 33% (in 2018), and only 38% of 55–64-year-olds were mortgage-free as of 2022. In practice, this means a growing number of older homeowners still carry mortgage debt into retirement. NZ Treasury research warns this is a strain: “over half of superannuitants still paying off mortgages spent more than 80% of their NZ Super on housing costs”
KiwiSaver and savings are often insufficient for many retirees. The average was ~NZ$37,000 in 2024/25 (industry coverage of Retirement Commission data), and many approaching 65 have far less. Relying on home equity as a “nest egg” is riskier than it used to be: a Treasury report notes that Household home ownership peaked at about 74% in 1991 and was 66.0% in the 2023 Census (up from 64.5% in 2018. This trend, combined with rising house prices and interest rates, means that many retirees may not benefit as much from rising property values and may even need to rent in retirement. In fact, research cited by Interest.co.nz projects that 40% of retirees will be renting by 2048.
Senior-Focused Housing Options
Older New Zealanders have several housing choices beyond staying in a family home:
Staying Put / Adapting: Many seniors opt to stay in their current home. In this case, modifications (such as grab bars, ramps, and better lighting) and universal design can make life easier.
A government health survey found that 79% of people aged 65 and above describe their home as warm and dry (well-insulated and mould-free), compared to only 62% of the general population, suggesting that most senior homes are indeed of good quality. Maintaining these homes (timely repairs, energy retrofits, etc.) is key to comfort and safety in older age.
Downsizing or Relocating: It is common for retirees to “downsize” to a smaller or more accessible home. Age Concern notes that many older people decide to move to a more manageable home or closer to support networks, enabling them to live independently longer. For example, a widow might sell a large house and buy a low-maintenance townhouse near family. Although moving can be stressful, a smaller home often means lower costs (in terms of rates and maintenance) and easier day-to-day living.
Retirement Villages: Retirement villages are a popular option for those seeking community and optional care. These villages offer units, villas or apartments tailored for seniors, often with communal facilities and care services. NZ’s retirement village sector is substantial: there were about 41,000 units in the market by late 2023 (housing ~53,000 residents). The sector is growing by roughly 2,000–2,300 new units per year. Choosing a village is a major decision – the government advises obtaining independent legal advice and thoroughly understanding the contract before signing.
Residential Care: For seniors needing full-time assistance (rest home or hospital-level care), moving into a care facility is an option. That typically happens after selling any home or downsizing to free up funds (NZ super can subsidise care based on assets/income).
Reverse Mortgages: Some older homeowners consider a reverse mortgage – a loan secured on the house equity that lets them receive funds without selling, to be repaid when the home is sold or through the estate. This can supplement retirement income while allowing seniors to stay in their homes. However, reverse mortgages come with fees and reduce the equity left for beneficiaries, so it’s essential to obtain independent financial advice.
Government Support: Seniors on low incomes can apply for up to $805 for the 2025/26 rating year (income thresholds: $45,000 for SuperGold / $32,210 for others). They can also receive NZ Superannuation. Many also rely on family assistance for house maintenance or care. Planning finances (budgeting for home ownership costs vs. renting) is critical for a comfortable retirement.
Selling the Family Home or Downsizing
When a senior decides to sell a long-held home (e.g. after downsizing or moving to care), the process can feel unfamiliar. Fortunately, the NZ housing market is well-regulated. Key considerations include timing, pricing, and preparation:
Market Timing: NZ’s market has a clear seasonal pattern. Spring (Sept–Nov) is generally the peak selling season – more buyers are active, and homes show well in daylight. Summer (Dec–Feb) and autumn (Mar–May) can also see strong sales, while winter is typically slower (though lower competition can help serious buyers find your home). However, economic factors like interest rates and overall supply/demand can be more important than season. For instance, if mortgage rates are high, buyer demand may be subdued even in the spring, My Top Agent.
Pricing: Consult the market analysis or a professional valuation to set a realistic price. Seniors often find that homes they bought decades ago have gained significant equity, but market prices must reflect current conditions. Overpricing can lead to a stale listing; pricing too low leaves money on the table.
House Preparation: Small improvements can make a big difference. Declutter, depersonalise, and fix obvious issues (leaky taps, broken tiles, etc.). Seniors should remember that buyers value a house that feels move-in ready and safe. Good photographers and staging (perhaps moving some furniture to create space) often improve the sale price.
Funding the Move: Plan for how the sale proceeds will be allocated. If moving to a smaller place, you might buy another home or pay rent. If moving to a village or care, budget carefully – these can have significant entry and ongoing fees. Consider consulting a financial advisor or accountant familiar with senior housing transitions.
Choosing a Real Estate Agent: Questions and Tips
Selecting the right agent is crucial – especially if you’re an older seller who may have limited experience with property sales. A knowledgeable agent can handle the complexity on your behalf. Here are some expert tips and questions:
Licensing and Credibility: In New Zealand, all real estate agents must be licensed by the Real Estate Authority (REA). You can verify an agent’s license on the REA website. Licensing ensures they’ve met training standards and follow a professional Code of Conduct. Avoid “agent-type” profiles without an REA number. Check the REA public register for the licence status and any upheld complaints from the last three years.
Local Market Knowledge: Look for an agent who knows your suburb well. Housing conditions vary from area to area, and a local expert will price and market your home more accurately (e.g. they’ll know what features nearby buyers want).
Track Record: Ask about recent sales: “How many homes have you sold in the last 12 months?” is a straightforward question. Also, ask how long it took on average to sell those homes (days on market). A high-performing agent should gladly share real statistics or references. If possible, speak with a few of their past clients. Questions to ask a real estate agent.
List-to-Sale Ratio: This ratio indicates how closely an agent’s sale price aligns with their initial listing price. You might ask: “What’s your typical list price vs sale price?” This reveals if the agent tends to overprice homes (then slash them) or prices them correctly from the start.
Marketing Plan: By 2025, most buyers will start their purchasing journey online. Ensure the agent offers professional digital marketing: high-quality photos (with a wide-angle lens), 3D/virtual tours, and listings on major portals. Also, ask if they use social media or targeted advertising. Offline strategies can also be effective (flyers, newspaper ads), depending on your location. The goal is to stand out among other listings.
Communication: Seniors often appreciate clear, regular communication. The agent should promise to keep you updated and explain everything in plain terms. At the outset, they must give you a written agency agreement stating the commission rate and any fees (Agency agreements must be in writing, include commission and expense disclosure, and a copy must be provided within 48 hours). If an agent is vague or high-pressure about signing, treat that as a red flag.
Negotiation and Service: Good agents are skilled negotiators. Ask them how they’d create competition (e.g. open homes, auctions) and protect your interests. They should be honest about any potential drawbacks in your sale. Also ask practical things like: “Will you personally attend open homes, or will an assistant run them? (Some seniors prefer the actual agent present.)
Commission and Fees: NZ agents typically charge 2.5%–3.25% of the sale price (plus GST) as commission. Often this is tiered – e.g. 3.25% on the first $400k, then 2% on the rest (examples may vary). Don’t be shy about asking the exact percentage or flat fees. Remember, it’s negotiable – some agents may agree to a lower rate if your property is highly marketable or if they see strong demand. Always weigh the commission against the service offered: Is staging included? Does the agent handle 3D tours, etc.? However, be wary of flat-fee offers if they seem too good to be true (they might not invest effort into your sale).
Use Checklists and Resources: Our “Questions to Ask a Real Estate Agent” guide lists many of these questions and more. Feel free to have a checklist of queries when you interview agents. If an agent is evasive, move on. Remember, this is likely a once-in-a-lifetime or rare experience – take your time to pick someone you trust.
How MyTopAgent Helps Seniors Find the Right Agent
At MyTopAgent, we specialise in doing the research for you. We use independent local sales data to match your property profile with agents who have a proven track record in your suburb. In practice, you simply fill out our free online form (“Find your Top Local Agent”) with your address, property type and budget. Within 48 hours, we’ll email you a personalised Property File and a shortlist of recommended agents. This is completely free for vendors – the agent pays us a referral fee when they sell your property. We have no affiliations with agencies; our only goal is to find you the best fit for your specific home.
Using a service like ours gives seniors extra peace of mind: we effectively “vet” the agents in advance. Combined with the tips above (checking licenses, asking key questions, etc.), you can approach the sale process with greater confidence.
Checklist for Seniors Selling a Home: It can help to write down steps as a bullet list:
Define your goals: Are you downsizing, moving into care, or relocating for a better lifestyle?
Research your finances: Work out your budget post-sale and any assistance schemes (NZ Super, Rates Rebate).
Prepare the home: declutter, make repairs, and stage it for optimal presentation.
Choose an agent: Vet 2–3 local agents using the questions above. Get written fee quotes.
Review offers carefully: Consider price and conditions (settlement dates, inclusions).
Plan the move: Book moving help or inform your family; consider timing (e.g., avoid winter if possible).
Use professional help: We recommend getting help from solicitors or conveyancers experienced with senior moves or downsizing.
These steps, along with expert advice (for example, see our guides on choosing an agent and best times to sell), will make the process smoother.
Conclusion: Ready to Move Forward?
Selling or changing homes in later life is a big decision, but with the right information and support, it can go smoothly. In New Zealand’s market, seniors generally benefit from strong home ownership and good-quality housing, but trends like more retirees renting and carrying mortgages are signs to plan carefully. By staying informed, asking the right questions, and choosing a great agent, you can protect your financial interests.
When you’re ready to take the next step, consider using MyTop Agent’s free service to find a top local agent. Simply enter your details on our site, and we’ll provide a tailored shortlist of proven agents – all at no cost and with no obligation to you. We specialise in helping NZ homeowners (including seniors) get the best possible sale outcome. Good luck with your move!
