Prices have dropped by up to 30% in some parts of the country – but experts say obstacles to home ownership remain
Three years ago, New Zealanders would have it found it almost impossible to imagine the country’s sky-high house prices falling.
The market was deemed one of the least affordable in the world, with house prices nearly nine times the average income and supply dismally low. Desperate first home buyers were being squeezed out of the market by cashed-up investors.
Some of those in low paid or no work were thrust into homelessness and waitlists for social housing ballooned. In mid-2021 the crisis reached fever pitch, with the national average house price exceeding NZ$1m.
But now, those prices are trending downwards. According to government-owned property valuer QV, national averages have fallen 13% since 2021, while Auckland has dropped nearly 20% and Wellington 30% - prompting questions about whether New Zealand has finally managed to turn around its housing crisis, and what it could mean for other overheated markets around the world.
