Quarterly house price to income ratio New Zealand 2019-2024

New Zealand has one 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 second quarter of 2024, the ratio was 118.4, 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 28 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. 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. 

Housing quality

While new builds are subject to stricter building regulations and standards, the quality of existing homes has been criticized by those residing in them. In particular, many homes lack efficient insulation. Subsidies have been introduced by community trusts, local health boards, and the government to assist in improving the housing standard across the country. The funding is specifically designated for insulation and installation of energy-efficient heating.