Results of the study also show the long-term impacts of housing on a person's quality of life including things like loneliness and depression. Homeowners reported higher levels of quality of life and less depression than tenants.
Home ownership is also associated with wealth and offers more financial security, professor Stephens said.
"Homeowners generally experience a stronger sense of security and belonging.
"They are also more likely to engage with the community and participate in social activities.
"Consequently, increasing people's ability to become homeowners or creating more opportunities for older people to get access to secure and stable housing will have both economic and social benefits."
The authors also agree home ownership is a lost dream to many.
"For many, home ownership is an unreal aspiration now," professor Stephens said.
"We need to look at how to create more secure, quality housing for people priced out of the market.
"Housing is one area where the government does have the power to intervene and come up with better housing options."
The report has been distributed to the Ministry of Social Development and the Ministry of Business, Employment and Innovation, as well as members of Parliament. The report is the work of Dr Agnes Szabo, Professor Christine Stephens, Professor Fiona Alpass and Dr Joanne Allen.