Increase in families living in cars seen by agency

Updated at 9:15 am on 13 August 2013

A social development agency is seeing an increase of indebtedness and says more families are living in their cars.

Homelessness is a growing problem, especially in Auckland, because of rising house prices and rentals.

Lifewise says it is seeing more and more people with extensive debt, and families are sleeping in cars and garages.

Spokesperson Corey Haddock said several factors are driving the indebtedness, which he expects to worsen.

Habitat for Humanity said almost half the applicants for its houses in Auckland were ineligible because of debt.

Habitat is an international organisation that develops realistically priced homes to sell.

Listen to more on Morning Report ( 2 min 38 sec )

Next story in National: Union says workers shouldn't pay for labelling error