Feature article

First home buyers hit a record high

With values down 18% from the peak and high stock levels, everyday Kiwi are seizing their chance to buy.

By Kelvin Davidson (Chief Property Economist, Cotality)

Last updated: 17 August 2026 | 4 min read

AI summary

First home buyers are taking advantage of the current market, reaching a record high 28% share of property purchases.

According to Kelvin Davidson of Cotality, lower house prices and high stock levels have created a great time to buy. Buyers are succeeding by using KiwiSaver for deposits and accessing low-deposit lending from banks. This nationwide trend is helping more Kiwis get onto the property ladder and secure their first home.

Getting the keys to your first home has felt like an uphill battle in recent years, but the tide is turning. If you felt like everyone was talking about a slower property market, there is a silver lining for a specific group of house hunters.

Let's introduce Kelvin Davidson, Chief Property Economist at Cotality. He notes that sales activity has been drifting slightly lower recently, and the stock of listings remains high. Property values have also been sliding gently downwards, remaining around 18% below the early 2022 peak, although they are still 16% above pre-COVID levels in March 2020.

"Although these conditions may not be pleasing a lot of property owners or sellers, there are always two sides to the housing coin, and it's a great time to be a buyer," notes Kelvin.

A winning streak from the Winterless North to the Deep South

First home buyers are taking full advantage of the current climate, accounting for a new record high market share of more than 28% of property purchases in Q2. This strength isn't just isolated to the main centres. Whether you are looking in the Super City, the Garden City, or anywhere in between, access to the market is solid across the board.

How are they doing it?

Lower house prices and a high level of choice are definitely helping, but Kiwi are also getting smart with their financing. Here is what is driving the trend:

KiwiSaver withdrawals: These are proving crucial for pulling together at least part of the deposit.
Low-deposit lending: Banks have money to lend, and many buyers are tapping into low-deposit allowances where up to 25% of owner-occupier loans can be approved at less than 20% equity.
High approval rates: Aggregated mortgage lending stats from the Reserve Bank in June showed a whopping 55% of first home buyer loans were done with less than a 20% deposit.

"Granted, buying a first home is never 'easy' per se. We need to acknowledge that currently there'll still be people out there who would love to buy but just can't quite get there," says Kelvin. "Overall, though, FHBs are winning at the moment and this is a continued good news story, helping more people into their own property with the non-financial benefits this brings."

Thinking about your own property journey? Check out the latest listings on Trade Me Property to see what your next move could look like.

Author

Kelvin Davidson

Chief Property Economist, Cotality

Chief Property Economist, Cotality - cotality.com Kelvin joined Cotality (previously CoreLogic) in March 2018. He brings with him a wealth of experience, having spent 15 years working largely in private sector economic consultancies in both New Zealand and the UK.

In his role with Cotality, Kelvin’s focus is on keeping up to date with what’s going on in the property market and continually finding different ways for viewing and interpreting it. Kelvin’s economics background means that he knows his way around a spreadsheet, but more importantly he always puts more emphasis on providing the key insights and telling a story.