Open AccessDownsizing property among the older generation
Author(s) -
Richard Mclaughlan
Publication year - 2020
Publication title -
policy quarterly
Language(s) - English
Resource type - Journals
eISSN - 2324-1101
pISSN - 2324-1098
DOI - 10.26686/pq.v16i1.6476
Subject(s) - inequality , property (philosophy) , capital (architecture) , affordable housing , business , demographic economics , property tax , labour economics , economics , economic growth , public economics , geography , tax reform , mathematical analysis , philosophy , mathematics , archaeology , epistemology
New Zealand experiences widespread intergenerational housing inequalities. Millennials are far less likely than previous cohorts to access affordable housing and to own property. Large dwellings which are often more suited to young and expanding families are arguably underutilised by the older generation. Retirees are living longer and often stay in homes that they have lived in for most of their lives. This is exacerbated by distortions in our tax system which leave owner-occupied housing free from a capital gains tax. One way to phase out this generational discrepancy is motivating older generations to move to smaller homes towards the end of their life cycle. This would free up larger properties for first home buyers and ensure that retirees live in more suitable dwellings.