Kiwis pride themselves on their reputation for friendliness and the findings will come as a surprise to many.
But it is a global phenomenon in developed economies.
Community disconnection is a long-term trend. Contributing factors include an increase in the female labour force (which means suburbs sit mostly empty during the day) and growth in rental accommodation.
One interesting point to be raised is that while the internet might be bringing people together at a macro level, it is also pushing us apart.
The rise in social media sites like Facebook might allow us to connect with long-lost friends living half-way across the world but is not so good at helping us to get to know our neighbours.
Websites like Neighbourly provide a point of connection but they're no replacement for meeting face to face.
I have little doubt that the concept of "neighbourliness" is strong in rural areas but in urban areas people often feel the need for greater privacy and the need for solitude after a hectic day in the office.
This coupled with the growth of virtual networks through social media and a change in leisure activities, where more people engage in individual, rather than team sports is eroding our sense of community.
Despite these forces, the benefits knowing your neighbours stretch beyond the ability to borrow a cup of sugar.
As Papamoa Police Sergeant Phil Gillbanks points out: it is comforting to know that people have someone close at hand to call on in their time in need.
The Wellbeing Index also shows people who feel people in their local area help one another a great deal were three times more likely to report high levels of wellbeing.
It suggests that getting to know your neighbours is still worth the effort.