Themes and Issues
The circumstances of people renting are more diverse
The RTA was designed in response to a particular housing environment. In 1986 many of those renting from private landlords were young adults flatting together or young couples prior to buying family homes. The housing needs of older people and families were mainly met through home ownership and the needs of the small proportion unable to afford ownership of a home were mainly met through the social housing sector. This has changed.
Behind the growth in total demand for rental housing are subtle changes to the mix of people renting. The individual and family circumstances of people renting, especially from private landlords, are far more diverse than they were in 1986.
Figure 2 summarises the main changes to the individual and family circumstances of people living in houses they rent. It shows how those renting in 2001 were living in more diverse family and household circumstances than those renting at the time of the 1986 census.
Figure 3
| Main trends in the characteristics of people renting between 1986 and 2001 |
|
Characteristic
|
Trend (1986 to 2001)
|
|
Age
|
People renting in 2001 were more likely to be older than those in 1986, with a sharp increase in the proportion of those aged over 29 and especially in those aged over 40.
|
|
Household structure
|
People renting in 2001 were more likely than those in 1986 to be:
- sole parent households; and
- couples with children.
People renting in 2001 were less likely to be just flatting together.
|
|
Ethnicity
|
People renting in 2001 were from a wider range of ethnic and cultural backgrounds than those who were renting in 1986. In particular, there was a significant increase in the proportion of Asian people renting.
|
There is a close relationship between household circumstances and children’s health status, educational attainment and general social well being. Therefore, of the changes mentioned in Figure 2, perhaps the most important is the increase in the proportion of families with children, and especially sole parent families, living in private rental housing.
Among those living in rental housing are people with special needs related to a physical or intellectual disability. One in five New Zealanders reports having one or more long-term disabilities. In 2001, at least 121,500 adults and 28,300 children with a disability rented their homes. While the proportion of disabled people renting in the private sector is not known, it is known that 91% of people who receive both a Disability Allowance and the Accommodation Supplement rent in the private sector.
People in different individual and family circumstances have different needs in terms of housing and tenancy services. For instance:
- Families with children will want rental accommodation near schools and will want to know that they can stay in their housing for the longer term.
- People with physical disabilities or impairments and older people will seek houses that are accessible and perhaps located close to services or shops that they frequent.
- Larger families will want larger houses, while adults living alone may want smaller houses.
- Many families and older people will live in rental accommodation for longer periods than in the past, and for an increasing proportion a rental house will be their home for life.
- New migrants or people for whom English is a second language will want tailored information on the RTA and their rights and responsibilities as tenants.
It is unclear how well the rental sector provides for people with different circumstances and needs. For instance, while the RTA prohibits discrimination on the grounds of ethnicity, gender, disability and so on, a 2003 survey of landlords found that most prefer to rent to professionals, young females and retired people, and that most prefer ‘not’ to rent to large families, students, sole parents and refugees or migrants. It is also noted that the majority of rental houses continue to be traditional three bedroom family houses that have been ‘recycled’ into the rental market rather than purpose built houses for different individual and family circumstances.
Concern has also been expressed that as demand and competition for rental housing grows, people with special needs or those who are perceived by landlords to be ‘less desirable’ tenants will find it increasingly difficult to find suitable rental accommodation.
Questions
- How well does the rental market respond to the needs of people in different family and individual circumstances?
- What can be done to improve the response of the rental market to a more diverse range of family and individual circumstances?
- Are changes required to the RTA and its administration to respond better to the more varied family and individual circumstances of tenants? If so, what changes are needed?