PHOTO: FILE
First-home buyers in New Zealand are benefiting from a housing market shift that provides better value and larger property options than in previous years, according to CoreLogic data. The median home price for first-time buyers has gradually decreased, from $715,000 in 2022 to $685,000 in 2024, even as standalone houses have risen to 73% of first-home purchases this year.
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CoreLogic’s chief economist, Kelvin Davidson, suggests first-home buyers are taking advantage of reduced competition, lowered property prices, and flexible financing options like KiwiSaver withdrawals and low-deposit loans. This trend aligns with the subdued market activity and signals favorable conditions for entry-level buyers who previously might have settled for smaller properties or townhouses. As affordability remains a priority, first-home buyers are increasingly choosing standalone homes in regions where prices are significantly below peak levels, enabling them to secure properties that offer both space and long-term value.
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With 27% of housing purchases now attributed to first-home buyers—above the 21% long-term average—Davidson notes that this share could remain strong over the coming months. Although tighter debt-to-income rules impact borrowers, allowances for exceptions provide additional access in higher-priced areas. This unique landscape presents Wellington as a top choice for first-home buyers, with almost 35% of purchases there attributed to newcomers in 2024, followed by Hamilton, Tauranga, and other regions where market entry is still relatively accessible.
Looking ahead, Davidson believes the possibility of lowered interest rates could sustain the momentum among first-home buyers. However, as mortgaged investors regain interest in the market, competition may heighten, yet first-home buyers are expected to hold an above-average share of the market through 2024 and beyond.