Affordable Housing in Newtown and Berhampore

In order to meet unmet housing need the Trust has, in recent years, built new affordable homes in Wellington.

In 2008 the Trust built six townhouses in the suburb of Newtown and is currently building four new four-bedroom townhouses in the adjacent suburb of Berhampore. The Trust targeted these suburbs because of the high need for affordable homes in these two areas.

Table 1 below outlines key facts about the two areas and compares them with average figures calculated for Wellington City as a whole.

These figures show that the two suburbs contain:

  • fewer households on a high income and more households on a low income
  • more unemployed residents
  • fewer property owners and more property renters
  • fewer residents living in separate homes and more residents living in medium and high density housing
  • more one or two bedroom properties and fewer properties with three or more bedrooms.

Furthermore, median rents in these two suburbs are equivalent to those found in more affluent suburbs. Table 2 below shows market rent figures for 2, 3 and 4 bedroom homes in a number of Wellington suburbs.

The combination of lower incomes, high rents and the lack of larger properties in Newtown and Berhampore makes it difficult for families to find suitable affordable housing.

By building new quality properties in these areas the Trust is giving families on a low income the opportunity to live in a warm and secure home – in an area that is convenient for schools, shops, community and medical centres, and public transport – that would normally be unaffordable.

Table 1 : Suburb Comparison

Newtown Berhampore Wellington City
Households with an income of $70,000 + 28.9% 28.0% 46.5%
Households with an income of $30,000 or less 24.5% 26.8% 16.4%
Employed - full or part-time 93.0% 92.5% 95.1%
Unemployed 7.0% 7.5% 4.8%
Households that own their dwelling 15.3% 21.0% 29.1%
Households that rent their dwelling 30.6% 25.8% 18.4%
Dwelling: separate house 39.4% 45.8% 61.1%
Dwelling: medium or high density 48.4% 46.0% 33.8%
Dwelling: One bedroom 20.9% 15.4% 11.0%
Dwelling: Two bedroom 28.5% 41.9% 23.1%
Dwelling: Three bedroom 25.9% 26.1% 36.6%
Dwelling: Three bedroom 25.9% 26.1% 36.6%
Dwelling: Four bedroom 10.4% 8.5% 19.0%
Dwelling: Five or more bedroom 4.6% 1.7% 6.2%
Household size: one resident 30.1% 32.0% 24.6%
Household size: two residents 30.7% 33.4% 32.8%
Household size: three residents 17.3% 16.4% 17.6%
Household size: four residents 12.6% 11.0% 15.7%
Household size: five residents 5.6% 4.6% 6.3%
Household size: six or more residents 3.7% 2.7% 3.0%
Social Deprivation Index (higher number indicates more deprived area) 1059.18

[Fourth most deprived area in Wellington City]

 1072.95

[Second most deprived area in Wellington City]

 961.59

Wellington City Council Community Profile, Wellington City Council, 2011. Retrieved 28 March 2011, from http://profile.idnz.co.nz/

Table 2 : Market Rent Comparison

Median Market Rent
Area 2 bedroom house 3 bedroom house 4 bedroom house
Vogeltown / Berhampore / Newtown $380 $470 $600
Karori $395 $477 $550
Island Bay / Melrose $380 $487 $595
Kilbirnie / Lyall Bay $360 $450 $520

Market Rent: 1 September 2010 – 28 February 2011, Department of Building and Housing, 2011. Retrieved 28 March 2011, from http://www.dbh.govt.nz/market-rent?TLA=Wellington&RegionId=9