The traditional three-bedroom home may not be the safe long-term investment that many people think it is, building researchers suggest.
The magazine of the Building Research Association (Branz) says the country's ageing population is creating more demand for smaller housing.
In 40 years, more than a quarter of New Zealand's population will be aged 65 or over. Families are getting smaller and more people are opting not to have children or to stay single longer.
Retirement Commissioner Colin Blair said the traditional family home was the most important asset for most people reaching retirement - they sold it and moved to a less expensive home, releasing cash for retirement.
"But if, in 15 years' time, more and more people are retiring and carrying out that plan ... the nest egg released by relocating may not be as great as anticipated."
Branz economist Ian Page said the family home was the most common house in New Zealand, and would remain so. But demand would grow for one-person and couple-only households.
However, Wellington real estate agent Steve Fejos said more people were setting up home offices, or wanted space within their relationships.
"I rarely have people come to me saying the house they bought was too big. I only have them coming back to say the house they have bought is too small."
If a change in lifestyle was afoot, it would take two to three generations, not the 20 years Branz predicted, he said. People wanted for themselves what they had when they were children.
Property developer Craig Stewart, of CAS Group, said people in the capital were opting for low-maintenance homes, smaller sections and living closer to the city centre.
But downsizing was not an issue, except in the case of apartment living.
"Even couples on their own, their preference is for three bedrooms rather than two because they want their own space."
- NZPA
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