Parental financial support for housing in New Zealand: Resource and motivational drivers : A thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy at Lincoln University

Abstract

Housing affordability, welfare changes, and an unstable job market have made the dream of homeownership increasingly unattainable for young New Zealanders. In response, a growing number of parents are offering financial assistance to help their children achieve homeownership and independent living. Recent reports indicate that 14% of New Zealand families have provided financial support for their children’s home purchases, with an average contribution of $108,000 NZD. Despite this trend, there has been scant investigation into the mechanism of such support, particularly in the New Zealand context. This study draws on the concepts of family resource allocation and resource mental accounting to examine how parental resource availability, particularly housing assets, influences their provision of financial housing support. Additionally, recognising that financial transfers within families are shaped by emotions and relationships, the study moves beyond purely economic-demographic explanations of giving. It also explores parents’ perceived motivations for providing such support and how these influence large-scale support behaviour through the lens of family motive concepts and the theory of planned behaviour (TPB). This study uses a quantitative-dominant approach with exploratory elements. Due to a lack of formal secondary data in New Zealand, data for this study were collected through an online survey. The study employed a range of analytic techniques including ordinary least squares (OLS) regression, logistic regression, mean score (MS) analysis, the relevant importance index (RII), and exploratory factor analysis (EFA). Findings indicate that parents with investment properties are more likely to provide substantial financial support compared to those without investment properties or homeownership. This difference arises not from income and savings advantages but likely from the perceived accessibility and liquidity of investment assets, aligning with the resource mental accounting concept. Additionally, investment properties appear to mitigate the resource dilution effect in multi-child families, significantly influencing the amount of support provided to children in such families. A non-linear relationship between investment property wealth and support levels is observed. This finding suggests that parent provide support not solely based on their resource availability but may also seek to maximise their family utility and preserve their children's independence. These results expand the focus of existing literature from resource advantage to resource allocation principles. This study also explores the motivations underpinning parental housing support, revealing that parents primarily express concern for their children’s housing challenges, a desire to fulfil their role as responsible parents, and an expectation to strengthen family bonds. However, regression analysis reveals that a discrepancy exists between parents’ higher intentions and actual support behaviour, influenced by parental homeownership, living region, and retirement. The findings demonstrate how parents’ perceived control over housing assets and regional disparities in housing wealth shape their support behaviour. Additionally, the influence of retirement suggests that life stage plays a key role in shaping parental housing support behaviour. This finding provides new insights into the theory of planned behaviour, demonstrating how life stage can moderate the link between intentions and actions within the context of intergenerational transfer. This research contributes to a deeper understanding of intergenerational housing wealth transfers, showing that parental financial support for housing is shaped by a complex interaction of housing resources, motivations, and welfare contexts. While the study does not aim to explore the interaction of welfare dynamic in depth, its findings offer insights for policymakers about the potential need to consider these factors when designing housing policies. Further research is needed to explore how the drivers of family support differ across institutional contexts, particularly concerning public welfare systems.