Buying a house isn't cheap — but there has been a "marked improvement in affordability" in the past four to five years, according to the latest figures from Cotality.
The property analytics providers' latest Housing Affordability Report showed conditions improved across every major measure of affordability in the June quarter.
It said the national value-to-income ratio fell to 6.7 in Q2 2026, matching its long-term average and down from the peak of 9.8 in late 2021.
The typical time required to save a 20% deposit also eased to 8.9 years, slightly below the long-term average of 9.0 years and well below the cyclical peak of 13.1 years.
Despite some upwards pressure in the past few months, mortgage rates remained much lower than they were at the peak, as did house prices. In the meantime, incomes have continued to grow.
The net result was that housing affordability across New Zealand has now been fully restored to its average or normal levels.
Cotality NZ chief property economist Kelvin Davidson said housing was not necessarily "cheap" but affordability was no longer the significant barrier it was a few years ago.
"The combination of those factors has restored housing affordability to much more normal levels across New Zealand.
"Buying a home will always be challenging, particularly for first home buyers saving a deposit, but affordability is no longer the handbrake that it was four or five years ago."
The Cotality report noted: "Housing affordability is generally more favourable for buyers than it was in late 2021 and early 2022, given that house prices have dropped and then stabilised, and incomes have risen."
The report also said mortgage payments as a share of household income had "improved dramatically".
"It now stands at 40% – below its own long -term average of 42%, well down from the 2020/21 peaks of 54%, and back to the lowest levels seen since prior to Covid," the report read.
Davidson said rental affordability also improved, with median rents absorbing 25.5% of household income nationally – broadly in line with the long-term average and the most favourable conditions for tenants in about a decade.
"That being said, it’s important to recognise that some tenants will be paying typical rents but not earning an average income. This will make renting more difficult for them than these headline numbers suggest," Davidson added.
What centres are the most attainable?
The report noted the key message remained the same around the country.
Among the main centres, Auckland, Tauranga and Wellington recorded the strongest turnaround after several years of subdued property values.
Auckland's value-to-income ratio fell to 7.2, below its long-term average of 7.5. Wellington now had the lowest value to income ratio of the main centres at 5.5, well below its historical average of 6.2.
Mortgage repayments also dropped below long-term averages in all three cities, while the years required to save a deposit have returned to below-average levels.
Christchurch and Dunedin experienced more modest improvements after property values proved more resilient during the downturn.
Christchurch's value-to-income ratio remained above its historical average at 6.7 compared with 6.0, while Dunedin was 6.1 compared to its long-term average of 5.7. Deposit affordability also remained more stretched than normal in both cities.
"Markets such as Auckland, Tauranga and Wellington haven't necessarily become inexpensive but, after several years of softer property values, they're more affordable than they've been for many years," Davidson said.
By contrast, Christchurch and Dunedin held onto more of their earlier price growth, which was good news for existing homeowners, but it also meant affordability hasn't improved to the same extent as experienced elsewhere.
Outside the main centres, Whangārei, Kapiti Coast and Nelson had value-to-income ratios and deposit measures below their own long-term averages, while Gisborne, Hastings, Napier and Palmerston North were close to their long-term benchmarks.
Queenstown and Invercargill remained among the country's least affordable markets for owner-occupiers, owing to the recent resilience of property values, while rental affordability continued to be a challenge across many provincial centres.
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