What's the average house price in NZ? (2024) (2024)

FAQs

What's the average house price in NZ? (2024)? ›

The average house price in New Zealand is $931,438 as at May 2024. Over the last 12 months this has increased by 1.16%. Want to see the most recent numbers for your specific council area? You can find the data for every single part of New Zealand in the table below.

All the factors rounded out to a modest outlook: “We have house prices growing over 2024 by around about 3%, lifting to around about 5% over 2025.” But Workman said he would not be surprised if those numbers were out on either side.

House prices won't be on the floor for long. A market forecast from one of the country's major banks has prices rising 7.5% next year and jumping 16% in 2025.

Future predictions for NZ house prices

The economists at major banks and other key financial institutions have forecasted that New Zealand house prices will increase by the following amounts in 2024: ANZ: 3%. Westpac: 5.86%. BNZ: 2.6%.

According to REINZ, the nationwide median sale price in April 2023 was $780,000 - down 10.9% year-on-year, but up 0.3% on the month before. The nationwide median sale price peaked at $925,000 in November 2021, according to REINZ.

There may be plenty of houses on the market, but now is still “not a great time for the average buyer”, says Gareth Kiernan, chief Forecaster, at Infometrics, but it is a better time than in late 2021 or early 2022 when it was clear that house prices were going to fall in the face of rising interest rates.

ANZ. ANZ's property April 2024 Property Focus report predicts that one year fixed mortgage rates will start to decline from September 2024, when they will be 7.1. From there, the bank expects rates to slowly decline to 6.4% in June 2025, and 6.0% in December 2025.

House prices peaked in Nov 2021. They then fell 17.80% and appeared to bottom out in May 2023. Since bottoming out NZ house prices have increased 2.28%. That includes REINZ house price index data through to May 2024.

No — experts do not think there is a housing market crash looming in 2024. Lending standards are much more strict now than they were before the Great Recession, and with low inventory and high demand both continuing, the housing market is not likely to enter a recession in the coming year.

And with the number of building approvals for new homes steadily dropping since October 2022, it's pretty clear what it will do to the price of property. However Kiwibank's chief economist Jarrod Kerr has a slightly more reserved forecast of house price gains, somewhere between 5% - 7%.

Why are NZ houses so expensive? ›

One of the most common explanations for the rise in house prices in New Zealand is insufficient supply. However, this doesn't account for the concurrent increase in house prices in other developed countries throughout 2020.

Why invest in property? New Zealand needs rental properties. The number of households renting is increasing each year and the bulk of those are living in homes provided by private landlords. This creates plenty of opportunity to use property as a way of building your own wealth.

New Zealand stands out as an exceptional example of how to successfully boost housing supply through zoning reform. Facing an urgent housing crisis, the island nation implemented upzoning measures that legalized the building of medium-density housing.

A family of four would need to earn about $162,000 (combined income) to live comfortably. This includes money for saving and going on holiday. A combined income of $120,000 would be enough to live in Auckland but not enough to save much money.

How much does it cost to build a three-bedroom home? Three-bedroom homes are one of the most common builds across New Zealand and the Genius Homes factory is no exception. For that reason, you will notice that a large proportion of designs in our range are three-bedroom homes varying from $228,000* to $435,550*.

Christchurch: Cheapest major city in New Zealand

Christchurch has the lowest cost of living of any major city in New Zealand by a large margin - compared to Wellington and Auckland, this southern centre is a bargain.

Mortgage rates are expected to come down in 2024, and inventory and home sales are likely to increase. Homebuyers and sellers can also expect prices to continue to rise, albeit at a slower clip than the past couple of years.

2024 Market Forecast

Home prices are predicted to rise 6.2% to a record median price of $680,300 next year. Housing affordability will remain flat.

Economic conditions are expected to remain subdued in the near term as the economy continues to rebalance from a period of strong demand, tight supply and historically high inflation. Real GDP is forecast to contract 0.2% in the year to June 2024.