In the June 2023 quarter, New Zealand’s household net worth experienced a decline of $33.5 billion (1.5%), marking the sixth consecutive quarterly decrease, as revealed by Stats NZ. Over the past six quarters, household net worth has plummeted by $255.2 billion, following a growth period until the December 2021 quarter.
Net worth, defined as the value of all assets owned by households minus the value of their liabilities, has been significantly impacted by various factors.
Equity and investment fund shares notably fell by $19.9 billion or 2.2% in this quarter, primarily driven by the continuing decrease in property values, affecting both equity and ownership of rental properties. This decline has been a consistent trend since the September 2022 quarter.
Despite the overall decrease, some factors offset the decline. A $3.3 billion rise in currency and deposits, along with a $2.6 billion increase in insurance and pensions, provided partial mitigation. The increase in insurance and pensions was attributed to higher pension entitlements and decreasing outstanding insurance claims, particularly from events like Cyclone Gabrielle and Auckland Anniversary floods.
However, a rise in household loans by $2.5 billion contributed to the overall decline in household net worth.
https://www.stats.govt.nz/news/household-net-worth-falls-for-sixth-consecutive-quarter/