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Summarised by Centrist
New Zealand’s housing market has dropped about 17 percent since its 2021 peak, pushing real dwelling values back to late 2019 levels and opening the door for first-home buyers.
Economist Tony Alexander said, “Frankly, this is sort of what many of us were hoping for in the past three decades, a better environment for first-time buyers to buy themselves their first property, start forming their family.”
New Zealand’s median dwelling price to income ratio is at its lowest point in a decade. Mortgage repayment affordability is now comparable to 2010, while average rents have also eased, down nearly 12 percent in Wellington, and just over 2 percent in Auckland, and Canterbury, according to realestate.co.nz.
The decline in net migration, just 13,066 arrivals in the year to July compared with more than 120,000 at the late 2023 peak, has reduced pressure on both house prices and rentals. Bond data from Tenancy Services confirms rents are trending lower nationwide.
Surveys suggest many New Zealanders welcome the downturn. While 17 percent worried about falling prices, 32 percent were optimistic, with younger age groups showing the highest confidence.
Economist Leith van Onselen concluded the shift is positive: “Shelter, a fundamental human need, is becoming more affordable in New Zealand, meaning Kiwis are now required to spend a smaller share of their earnings to simply put a roof over their heads.”
