NZ housing not cheap, but affordability shows signs of improving

According to a CoreLogic report, housing affordability for buyers is at its best level since 2019. This improvement is driven by falling property values, rising incomes, and lower mortgage rates, which have eased metrics like the value-to-income ratio and mortgage servicing costs.

However, renters face significant pressure, with the rent-to-income ratio reaching a record high. This makes saving a deposit more difficult, reinforcing the challenge for those trying to enter the market while conditions improve for existing homeowners.