Are Kiwi House Prices Increasing?

Are Kiwi House Prices Increasing?

It is no secret that property price increases are one of the biggest barriers in the way of Kiwis entering the housing market. With the cost of living rising, Kiwis will be wondering the fateful question: are house prices rising in 2024 or is now our chance to buy?

While house prices came to a stall at the end of 2023, this year we can expect to see a slight rise in prices. 

One database that keeps track of house prices throughout the years is called Quotable Value House Price Index. This index shows that across the main urban centres, home values have indeed increased. 

On a national level, the average home value increased by 0.6 percent through the 2023 December quarter to $905,070. In the same quarter, Rotorua and Tauranga saw the most increase in home value. Aotearoa’s largest cities also saw a slight increase, although lower than Rotorua and Tauranga for the month of December.

So, it is likely that we can expect a steady increase in house prices throughout 2024

Why Are House Prices Increasing?


Over the past year, there have been 100,000 more people moving to New Zealand, rather than those who have left. This is one of the highest spikes in population in decades. However, there have not been as many new homes built in the past year than in previous years, meaning that there are simply not enough homes to meet the surge in demand. When there is more demand, and less homes available, it means that house prices will push up. If you are renting, or wanting to rent a home, migration is one of the reasons why the cost of rent is also increasing and the pool of decent rental properties is decreasing. 


Kiwis are feeling the pinch of the cost of living crisis. While economists cannot agree on the way inflation will sway this year, Kiws are constantly facing the struggles of expensive groceries, rent, and petrol amongst other things. When inflation is high, the prices of goods and services increase. To tackle inflation, the value of homes increases and banks and non-bank lenders will subsequently increase their interest rates to combat inflation. 

Increased Interest Rates

As a consequence of increased inflation, banks and non-bank lenders have had to increase their interest rates. This is a strategy to combat inflation and even help keep it down in the long run. This is because if a loan is more expensive, people will spend less money on other goods. If there is a decrease in spending, demand will reduce and prices will eventually drop, too. However, an increase in interest rates in the meantime means that home buyers will face larger borrowing costs. We know a lot of Kiwis are coming off low fixed term rates from a few years ago of around 3-4% and are now being forced onto interest rates of 6% and higher. This can increase their mortgage repayments, even doubling them. 

There is Still Hope!

While yes, house prices are generally still increasing across the country, there is still hope for Kiwis seeking their first home. 

There are a variety of ways you can get your foot in the property door such as: 

  • Kiwisaver First Home Withdrawal
  • Kiwisaver First Home Grant
  • First Home Loan

Read More

How to Buy a Home in NZ

How Do I Use Kiwisaver to Buy a Home

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Wednesday, 14 February 2024