Sarah Wall 3 Jun 2025
Categories
Property
Couple sit on the floor eating pizza in their new home

Getting on the property ladder is tough

A new Cotality-Westpac NZ First Home Buyers report suggests that while it’s still challenging for Kiwis to get a foot on the property ladder, current market conditions are promising.

According to the report, the median price paid by first-home buyers across the country is currently $700,000 – a figure that’s held steady for the past few years and is down slightly from 2022’s median of $719,000.  

Westpac NZ Senior Economist Satish Ranchhod was a contributor to the report. He says the current relative affordability of house prices coupled with the lower interest rate environment is helping more New Zealanders into their own home.

“Fixed mortgage interest rates are now around 170 to 200 bps lower than this time last year. For those buying an average priced first home, those lower interest rates could cut their monthly mortgage costs by around $800,” Mr Ranchhod says.

The report says the number of first home buyers has increased over the past few years – between January and April 2025, first home buyers accounted for nearly 25% of all property purchases across the country, well above the long-term average of 21-22%.  

At the same time, the average age of first home buyers is creeping up. The report shares new data showing Auckland first-time buyers now average 37 years old, with Wellington on 36 and Christchurch on 35 - each of those ages around two to three years older than in 2019.

“This shift partly reflects conscious lifestyle choices — such as travelling, building careers, or starting families — but housing affordability remains a key factor,” Mr Ranchhod says.

“Even with prices well below their 2022 peak, getting onto the property ladder still takes time, especially in larger centres like Auckland where prices tend to be higher.”

Cotality Chief Property Economist Kelvin Davidson says while first home buyers may be older, they’re entering the market with a clear plan and strong decision-making.

“They’re capitalising on their ability to tap into KiwiSaver, abundant listings, modest price growth and accessible finance to secure better homes in many cases. Making full use of the low-deposit lending allowances at the banks is another support for first home buyers,” Mr Davidson says.

Read the full report here.

Categories
Property