KEY POINTS:
A study out yesterday highlighted the rise of the new phenomenon, revealing that more people in their 50s and 60s are renting rather than owning a house.
An entire new class of Aucklander is destined to remain beholden to landlords until they die, forking out rent instead of
paying off their own house.
But they could be in for a shock because landlords are preparing to increase Auckland weekly rent by up to 20 per cent in the next two years.
The number of Aucklanders aged 65-plus renting privately has more than doubled in the last decade, from 2058 households to 4236 last year.
Add to that the number of elderly Aucklanders renting from Housing New Zealand and territorial authorities and the figures climb much higher.
The Centre for Housing Research released a study from DTZ Research which analysed housing data in Census06.
It highlighted the fact that nationally, the number of elderly renters has almost doubled, from 8196 households in 1996 to 15,372 households last year.
Study author Ian Mitchell, manager of DTZ Research, said older Aucklanders were being forced to rent and were not tenants by choice.
"They're renting because they have to, whereas some younger people are renting because of a lifestyle choice. If you're not a homeowner by your mid-40s, you're unlikely to ever be one and be forced to rent," Mr Mitchell said.
The study showed that generally, home ownership levels have fallen faster in Auckland than elsewhere.
In 1996, 69.2 per cent of Auckland households owed their house, but that fell to 64.6 per cent in 2001 and 63.8 per cent last year.
Renters are on the rise faster in Auckland than any other areas.
"The Auckland region had greater percentage increases in private renter numbers," the study said.
Auckland had just 73,000 households renting in 1986 but now out of the country's 451,000 tenant households, 145,000 of households who rent are in Auckland.
Wellington is second with 53,000 households renting, followed by Waikato with 44,600 tenant households.
Steeply rising house prices are taking a big toll of people's home ownership dreams. Nationally, home ownership fell from 67.8 per cent in 2001 to 66.9 per cent last year.
Younger age groups between 20 and 40 years are suffering the most, experiencing the greatest percentage point declines in their share of owner-occupier tenure, the study said.
Ownership levels will soon plummet further. By 2016, just 61.9 per cent of the population will have a house, the study found.
Mr Mitchell is worried about the social implications for elderly Auckland tenants.
"Older households will face more housing stress, defined as paying more than 30 per cent of their gross income on housing costs," Mr Mitchell said. Andrew King, vice-president of the Property Investors' Federation and an Auckland landlord, said savvy pensioners could be better off in a rented place. People should not be negative about elderly flatters.
"It makes sense for them to rent. If you're elderly and you have a mortgage, you're better to rent. But the best thing for people is still to buy a house and pay it off fairly early and not have a mortgage when they retire," Mr King said.
Rents were at historically low levels compared to house prices, he said. But Auckland rents could rise by 20 per cent in the next two to three years.
Away from family and friends and renting at 77
Sheila Priestley, 77, has been renting in Massey for the past three years.
Asked how she liked being a tenant at her age, she described herself as "contented" with her lot.
Once a clothes model in Britain and a photographic character model here, she says she would prefer to own a house.
"Then you can decide where you want to be," she said, recalling how in 1981 she came close to buying.
But poor health and a job loss took their toll and she has remained a tenant.
For 10 years she lived in Domain St, Cheltenham, in a terrace house.
She adored that area of the North Shore for its character, ambience and neighbourhood. But the place was owned by Housing New Zealand and despite making it known she wanted to stay there and telling authorities the only way she would leave was in a box, she had to move.
So she shifted to Massey three years ago.
Initially she did not know that area, which is some distance away from long-established friends and relatives.
"I had to get to know Henderson. I had to pay someone $50 an hour to take me around.
"I lived most of my life on the North Shore so family and friends are over there."
