In 2024, the average weekly household expenditure on mortgage repayments in New Zealand came to around *** New Zealand dollars. This marked a signficant rise in average weekly mortgage repayment expenditure from the previous year.

In December 2024, the value of mortgage lending to owner-occupier borrowers (excluding first-home buyers) in New Zealand amounted to around **** billion New Zealand dollars. Residential lending to investors was approximately **** billion New Zealand dollars in comparison. Housing affordability in New Zealand Many people across New Zealand have discarded the homeownership dream due to the country’s unaffordable housing supply. While average residential house prices fell across some of New Zealand’s regions in 2024, first-home buyers are still largely priced out of the market due to high mortgage repayments, interest rates, and average home deposit values. The monthly residential mortgage lending value to first-home buyers in New Zealand in December 2024 came to around *** billion New Zealand dollars, marking a slight rise from the previous month. The highest monthly value of mortgage lending to first-home buyers across the country was recorded in March 2021, during a year when average residential mortgage rates were at their lowest. Where are residential mortgage interest rates heading? According to a survey conducted in May 2023, rising interest rates were the leading property market concern among New Zealanders, with over ** percent of respondents expressing their concern. New Zealand’s average new residential mortgage interest rates were at their lowest in 2021 but have inflated greatly over the past few years. In June 2021, the average 1-year fixed interest rate for a new standard residential mortgage in New Zealand was at **** percent, with this rate rising to over *** percent by December 2023. Nonetheless, mortgage rates showed signs of leveling out at the end of 2023, and began declining in 2024.

This report analyses mortgage affordability in New Zealand, which is presented as the proportion of a household's monthly earnings left over after a mortgage repayment. This is calculated using the average monthly repayment for a standard 30-year loan on the median house price with a 20% deposit. An increase in the percentage indicates the average mortgage becoming more affordable for households. The data for this report is calculated from information sourced from Statistics New Zealand (Tatauranga Aotearoa) and the Reserve Bank of New Zealand (Te Putea Matua) and is presented as a percentage of average household earnings.

New Zealand Household Economic Survey: Average Weekly Household Expenditure: Others Expenditure: Interest Payment: Mortgage data was reported at 95.000 NZD in 2016. This records an increase from the previous number of 73.200 NZD for 2013. New Zealand Household Economic Survey: Average Weekly Household Expenditure: Others Expenditure: Interest Payment: Mortgage data is updated yearly, averaging 71.150 NZD from Jun 2001 (Median) to 2016, with 6 observations. The data reached an all-time high of 95.000 NZD in 2016 and a record low of 61.400 NZD in 2010. New Zealand Household Economic Survey: Average Weekly Household Expenditure: Others Expenditure: Interest Payment: Mortgage data remains active status in CEIC and is reported by Statistics New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.H010: Household Economic Survey: Average Weekly Household Expenditure.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.