Young Aucklanders opt for cars over houses

Young Aucklanders opt for cars over houses

New figures suggest under-30s are steering away from massive mortgages and buying a new car instead.

It's probably no surprise the trend is most pronounced in Auckland, where saving for a house deposit can seem an impossible dream.

"The under-30s have a little bit more liquidity in their income, but we don't actually think they're buying new houses," says Kia Motors New Zealand general manager Todd McDonald.

Instead of buying houses, Mr McDonald says under-30s are steering away from massive mortgages and turning to motor vehicles. He says it's happening everywhere, but particularly in Auckland where house prices are through the roof.

"Waikato, Wellington, Christchurch are all strong areas, although Auckland surpasses them in sales almost six to one," he says.

The cost of an average three-bedroom house in Auckland is now more than $700,000. You can get a brand new SUV for $30,000.

Since 2012, the number of medium-sized SUVs sold to under-30s has skyrocketed by 187 percent, and that's industry-wide.

But mortgage lenders say just because under-30s are buying cars, doesn't necessarily mean they're not buying bricks and mortar.

"The reality is there's still a lot of people still desperate to get into the housing market," says Squirrel managing director John Boulton. "I think what you're seeing here is a lift in confidence."

But with petrol prices so cheap, some would argue there's no better time.

Newshub.

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