‘It’s like a Ponzi scheme’: New Zealand first homebuyers lean on bank of mum and dad

High housing prices mean many younger New Zealanders are struggling to get on the property ladder, and assistance from parents has become the norm. Average house prices in Auckland (pictured) are now over $1.2m. Photograph: denizunlusu/Getty Images

Olivia* was giving up on the idea of ever owning a home. The project coordinator and her partner, a teacher, had opted to try to buy in Ōtautahi Christchurch, where prices were lower than other main centres, and they would be closer to family.

“We had a 20% deposit saved, but as the market went up, that 20% got smaller and smaller,” she says. As their deposit portion shrank, the banks became squeamish about lending to them. “Every month that went by, it became more out of reach, because of the speed that house prices were going up.”