From 2013 to 2023, New Zealand appears in the top 10 fastest-growing millionaire populations in the world. The country’s millionaire population grew 48 per cent - ahead of Switzerland and Australia at 38 and 35 per cent.

Most New Zealanders hold their wealth in property. Almost 60 per cent of all household assets were in housing and land in March 2021 (before the peak of the housing market), says Wealth Morning chief executive Simon Angelo.

Since the early 2000s, housing has risen to become almost five times the value of the country’s GDP. By comparison, in the US that multiple is only around 1.9 times.

Americans have grown much more wealth in equities. About 30 per cent of Americans own a stock portfolio worth more than $US500,000. This wealth increase has come even as interest rates rise.

Over the past five years – May 2019 to May 2024 – New Zealand home prices have lagged the S&P 500, which was up more than 80 per cent.

Prices Double

On average, Kiwi properties have increased 5.5 per cent. This includes peak-to-trough drawdowns in 2023 of 19 per cent in Auckland and 25 per cent in Wellington.

Residential property has delivered much better over a 10-year period, Angelo says. Over that time frame, prices have about doubled.

However, New Zealand home prices (by multiple of median household income) are still among the most expensive in the world. Auckland homes still sold for 8.2 times the median income last year, when affordability is generally considered to be around three times income.

This has led to the government demanding councils “live zone” enough land for 30 years of housing growth and ditch urban rural boundaries after research showed urban growth boundaries alone add a staggering $600,000 to the cost of land for houses on Auckland’s edges.

The government says ensuring abundant developable land within and around cities will prevent the artificial scarcity that drives up prices. This is in contrast to housing affordability policies that are limited to densification strategies.