Why are New Zealand houses so badly insulated? New Zealand is relatively new country. 

It essentially was founded in 1840 in a contract between the native Maori people and the British Government. 

For some reason a large chunk of the housing stock in New Zealand is badly insulated and drafty and cold, compared to houses in Europe for example.* 

I don't understand how a country that was essentially built in the modern era, has built such bad houses. 

What economic factors contribute to this? 

*Here's a good paper about the subject. PDF.
Insulation is more of a luxury than a necessity in the oceanic climate. If you don't have insulation in a continental climate, you'll die. In NZ, it will be uncomfortable, but you'll be ok.

Dunedin may provide arelevant counter argument. It gets below freezing often there. I don't know about insulation rates.

My second answer is: We're just tough mate. Harden up.