First-time buyers now dominate New Zealand’s housing market amid falling prices and more supply
First-home purchasers have become the biggest segment of buyers in New Zealand, surpassing investors and existing homeowners.
Data from Cotality shows first-home buyers have become the leading buyer group in New Zealand, representing 29% of the market and even higher shares in Auckland (31%) and Wellington (37%). Prices have fallen 18.2% from their 2022 high, with Auckland down 24.5% and Wellington down 27.2%, improving affordability measures. Reduced competition from movers and investors—who face flat rents, higher rates and policy uncertainty—has opened up opportunities for newcomers.
The Reserve Bank’s relaxed loan-to-value rules and National’s pledge to raise the income cap on the Kāinga Ora First Home Loan scheme have expanded low-deposit financing. KiwiSaver savings are increasingly used for deposits, while a surge in new construction has boosted the number of homes for sale by 45% compared with three years ago.
