The average price of residential property in Auckland City, New Zealand, was the highest in the Auckland region in June 2025, with an average sale price of around *** million New Zealand dollars. In the same month, the regional median house price was around ******* New Zealand dollars across Auckland. Housing costs The average sale price of residential property in Auckland has fluctuated over the past months. While housing affordability has improved slightly as the median house price has begun to stabilize, Auckland still has one of the least affordable housing markets in the developed world. The average weekly rent in the city has been over *** New Zealand dollars a week since 2016, with the Auckland region having one of the highest mean rents for residential housing across the country. Residential housing construction New Zealand's new residential dwelling consents hit a five-year low in 2024. The number of building consents granted for new homes in the Auckland region declined that same year, following a trend of year-on-year decreases since 2021. Nonetheless, a stronger pipeline of residential housing development is expected between late 2025 and 2029, hopefully providing some relief from the supply and demand imbalance.

New Zealand has *** of the highest house price-to-income ratios in the world; nonetheless, since the first quarter of 2022, the country's house price-to-income ratio started to trend downward. In the fourth quarter of 2024, the ratio was *****, a slight decrease from the same quarter of the previous year. This ratio was calculated by dividing nominal house prices by nominal disposable income per head, and is considered a measure of affordability. Homeownership dream New Zealand has been in what is widely considered a housing bubble. The disproportionately large increases in residential house prices have placed the dream of owning their own home out of reach for many in the country. In 2024, around ** percent of residential properties were sold for over a million New Zealand dollars. The majority of mortgage lending in the country went to owner-occupiers where the property was not their first home, with first-home buyers often struggling to secure a loan. In general, only New Zealand residents and citizens can buy homes in the country to live in, with new regulations tightening investment activity in that market. Rent affordability Due to New Zealand's high property prices, many individuals and families are stuck renting for prolonged periods. However, with rent prices increasing across the country and the share of monthly income spent on rent trending upwards in tandem with a highly competitive rental market, renting is becoming a less appealing prospect for many. The Auckland and Bay of Plenty regions had the highest weekly rent prices across the country as of December 2024, with the Southland region recording the lowest rent prices per week.

In recent years, demand for temporary housing has been one of the most significant issues for the industry. Because of rising rental costs, many have faced the risk of homelessness, with many experiencing financial hardship and persistent economic disadvantage. This has been exacerbated by the economic impacts of recent global events, including the COVID-19 pandemic, with the economic consequences resulting in more individuals and families under financial stress. The shortage of affordable housing and rising rent costs have placed significant pressure on homelessness, which has ramped up demand for crisis accommodation service providers. Industry revenue is expected to increase at an annualised 1.6% over the five years through 2025-26 to $1.8 billion. Greater housing stress has boosted demand for crisis housing in recent years. Family breakdowns are one of the main reasons for housing transiency and are a crucial driver of demand for crisis and refuge accommodation. Inflationary and cost-of-living pressures will sustain industry demand, limiting declines in revenue, which is expected to inch down 0.8% in 2025-26, mainly because of stabilisation in the housing market and gradual economic recovery, easing the need for immediate crisis intervention. The Budget 2025 includes considerable additional money for disability assistance and social housing, including $60 million per year for disability residential care and $128 million over four years for new social housing in Auckland, supporting industry profitability. Several factors, including a shortage of affordable housing, economic hardship, disabilities, mental health conditions and addictions to alcohol, drugs and gambling, influence homelessness. Though these issues suggest a continued demand for crisis and care accommodation services, industry growth is projected to be tempered by cost pressures in 2028-29. Also, while ongoing housing affordability issues and an aging population are anticipated to drive industry growth, funding constraints will limit the expansion rate. Overall, industry revenue is forecast to slightly plunge at an annualised 1.9% over the five years through 2030-31 to $1.6 billion.