Feature article

NZ housing not cheap, but affordability shows signs of improving

Housing affordability has improved to its best level since 2019

Kelvin Davidson
Last updated: 13 March 2025 | 5 min read
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A CoreLogic report shows NZ housing affordability for buyers is the best since 2019, thanks to falling prices, rising incomes, and lower mortgage rates. The time to save a deposit and mortgage servicing costs have both improved, making homeownership more attainable.

Conversely, renters face record-high costs, with rent absorbing 28% of income. Affordability has improved most in Auckland and Wellington, but Tauranga remains the least affordable main centre. Long-term improvement depends on increasing housing supply.

Signs of improvement, but affordability pressures remain

Renters face mounting pressures

Regional affordability shifts

What’s next for affordability

Author

Kelvin Davidson Kelvin Davidson
Chief Property Economist, Cotality