PHOTO: New Zealand was once the envy of the OECD during the 1970s. FILE
By Property Noise NZ | August 9, 2025 | 5 min read
📉 From World-Class to Warning Signs
New Zealand was once the envy of the OECD during the 1970s — boasting strong wages, affordable homes, and a top-tier education system. Fast forward to today, and the story is starkly different:
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💸 Wages stuck in the slow lane while prices skyrocket
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🏠 Housing market unaffordable for most Kiwis
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🎓 Education system underperforming, risking the future workforce
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🚶♂️🚶♀️ Mass exodus of talent heading to Australia and beyond
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💰 Wages vs. Inflation — A Deadly Gap
Despite record inflation, average Kiwi wages have barely budged in real terms. Everyday essentials and mortgage repayments now squeeze household budgets, making it harder than ever to get ahead.
🏡 The Housing Market Nightmare
Median house prices have ballooned to levels 6+ times average household incomes, locking first-home buyers out and turning homeownership into a distant dream. This crisis fuels inequality and sparks growing social unrest.
📚 Education System Falling Behind
New Zealand’s education system struggles with:
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Low student achievement scores
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Teacher shortages
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Unequal access to quality resources
Without urgent reform, this threatens long-term economic growth and social mobility.
✈️ The Great Kiwi Brain Drain
Thousands of skilled Kiwis are migrating to Australia every year, chasing better pay, affordable living, and stronger career prospects. This brain drain further undermines New Zealand’s ability to compete globally.
📊 What This Means for Property Investors
These economic realities are reshaping the New Zealand property market. High prices, limited supply, and demographic shifts demand smarter investment strategies and a deep understanding of changing buyer behaviour.
🚀 The Way Forward
To reclaim its OECD status and restore prosperity, New Zealand must:
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Boost wages and control inflation
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Increase affordable housing supply
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Invest heavily in education
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Stem the migration tide by creating better opportunities
Stay tuned to Property Noise NZ for expert analysis on these issues and their impact on the property market.