The national average dwelling value rose 0.3% in the three months to May to $912,190, but remains 14.2% below the 2022 peak, with a patchy picture across regions.
New Zealand's housing market showed little movement in the three months to May, with national house prices inching up just 0.3% — a fraction that still left the average dwelling value 14.2% below where it sat at the market peak in early 2022.
The latest QV House Price Index, released this week, put the national average dwelling value at $912,190 at the end of May, up 0.3% over the prior quarter but down 0.2% compared with the same time last year.
A flat market with regional variation
The national picture masks a more varied picture at the regional level. Of the 19 main urban districts tracked by QV, 11 saw average values increase over the quarter, six declined, and two were unchanged. The biggest gainer was Invercargill, where average values rose 1.7%, while Whanganui recorded the largest decline at minus 3.1%.
Auckland — New Zealand's largest property market — was flat over the period, neither adding nor losing significant ground. The city's stability reflects a pattern seen across the country: enough buyers to absorb the steady supply of properties on the market, but not enough competition to push prices meaningfully higher.
QV spokesperson Simon Petersen said the latest figures pointed to a market that remained broadly stable but increasingly patchy around the edges. "There's a steady supply of houses for sale and enough buyers to meet the market, but not nearly enough competition to drive prices upward in any major way," he said.
The longer-term picture
The modest quarterly increase follows a sustained period of price softening since the 2022 peak. The 14.2% decline from those highs translates into a significant reduction in aggregate housing wealth, though the impact varies considerably depending on when a property was purchased and whether it was financed with debt.
For homeowners who bought at or near the peak, the market has yet to recover enough to restore their equity position. First-home buyers who entered the market in the past two years may find themselves in a similar position, particularly in areas where values have fallen more sharply than the national average.
Renters: a different trend
While the housing market has been characterised by stagnation, rental affordability has been improving in most parts of New Zealand. The latest Regional Rental Affordability Index, compiled by Property Brokers and The Property Knowledge, showed average rents now consume 39% of monthly earnings per job on a national basis — down 5 percentage points over the year.
That improvement has been driven by easing rents and rising incomes in many regions. In Hawke's Bay, rent as a share of income fell 9% year-on-year, while Wellington saw a $42 per week reduction. The national median rent burden as a share of disposable income now sits at 25.5%, compared with 23% for Australia — a gap that is closing as the two markets head in opposite directions.
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.