While property sales fall nationwide, first-home buyers are increasingly active, making up a record 27.7 percent of all purchases as competition from investors and upsizers eases.
While total property sales across New Zealand are declining, a notable shift is occurring in who is buying. First-home buyers have become the largest single cohort in the market, growing their share even as the overall market cools.
According to Cotality data reported by RNZ, first-home buyers now account for 27.7 percent of all property purchases — approximately 2 percentage points higher than a year earlier. Over the first five months of 2026, this group purchased 10,025 properties, up from 9,794 during the same period in 2025.
Doing more deals in a quieter market
Nationally, property sales totaled 36,152 over the first five months of the year — down 4.7 percent year-on-year. Yet first-home buyers continued to increase their activity, even as the overall market contracted.
"Their market share continues to just creep higher every quarter from record high to record high," Cotality chief property economist Kelvin Davidson said. "It's actually because they're doing more deals. In an overall market where the number of sales is going down, first-home buyers are actually buying more properties."
The dynamics of a quieter market — more choice and less competition — appear to be working in favour of first-home buyers, who typically have smaller budgets and face greater hurdles in competitive bidding situations.
Why other buyers are pulling back
While first-home buyers have grown more active, other traditional buyer groups have retreated. Purchases by people moving from another owner-occupied home were down about 11 percent year-to-date, and investor activity fell roughly 6 percent.
Davidson suggested investors were navigating uncertainty around potential tax changes ahead of the election, with some concerned about whether a Labour government might reinstate interest deductibility for rental properties. "The election is looming as well and we know that tax is going to be a feature of that," he said.
Simplicity chief economist Shamubeel Eaqub told RNZ that some first-home buyers may also be motivated to act before any further rise in interest rates later in the year.
Flat prices, plenty of choice
National property values sit about 0.6 percent below where they were a year ago, according to RNZ, with quarterly movement minimal — up 0.1 percent nationally. Regional variation is modest: Auckland down 0.5 percent over three months, Wellington down 0.6 percent, and Christchurch up 1.4 percent.
Davidson described the market as having been "pretty stable for a number of years now" with little sign of significant disruption to current conditions. Combined residential property is now worth $1.67 trillion, with $398 billion in debt secured against it.
For tenants, rents may be reaching a floor. After previous declines, official data shows a modest rise of 0.7 percent in the year to May — suggesting the pressure on rental affordability, while still significant, may no longer be intensifying.
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.