Housing affordability in New Zealand has genuinely improved. The latest figures from Cotality show the ratio between average house prices and household incomes has dropped to 6.7, right in line with the 20-year average, and the best it’s been in around a decade. Mortgage repayments, deposit saving times, and rents have all become more manageable too.

For much of the last five years, “housing affordability” has felt like a bit of a punchline. So this is genuinely worth sharing: New Zealand’s housing affordability has bounced back to its long-term average, and is now at its best level in roughly a decade.

What the latest figures actually show

Cotality’s latest figures, covering the June 2026 quarter, show the ratio between average house prices and household incomes has dropped to 6.7. That’s right in line with the average of the past 20 years, and a big step down from the eye-watering 9.8 peak back in 2021.

It’s easier on the household budget in other ways too:

Mortgage repayments now take up around 40% of the average household’s gross income, down from a peak of 54% in late 2021 (and slightly better than the long-term average of 42%). Saving a 20% deposit takes about 8.9 years on average, a touch faster than the long-term norm of 9 years. And renters haven’t been left out either: rent is now taking up 25.5% of income, the most affordable renting has been in around a decade.

As Cotality chief economist Kelvin Davidson put it, affordability is “no longer the handbrake that it was four or five years ago.”

Why this matters, even if house prices still feel high

None of this means houses are suddenly cheap. What’s changed is the relationship between prices and what people actually earn — and that relationship is what determines whether a mortgage is manageable, not the sticker price on its own.

That shift matters differently depending on where you sit:

If you’re thinking about buying, a lower price-to-income ratio and a smaller share of income going on repayments means the numbers are more forgiving than they’ve been in years. If you’re already a homeowner wondering whether to fix, float, or refix your mortgage, it’s worth checking whether your current arrangement still makes sense against today’s rates. And if you’re saving towards a deposit – including using your KiwiSaver as a first-home buyer – a shorter average saving timeframe is genuinely good news.

What this means for you

Better affordability is good news across the board, but “better on average” doesn’t automatically mean “better for your situation.” Whether now’s a sensible time to buy, how your current mortgage stacks up, or what these numbers mean if you’re weighing up a sale all comes down to your own circumstances, your income, and your goals.

Why talk to a Castle Trust adviser about it?

Numbers like these are useful, but they’re national averages — they can’t tell you whether now’s the right time for you to buy, refix, or sell, and that’s really where an adviser comes into play.

If you’re buying, we’ll look at your full picture — income, deposit, KiwiSaver, and what different lenders will actually offer you — rather than just the headline affordability numbers, so you know what’s realistic before you start looking. If you’re refixing, we’ll check your current rate and term against what’s available now, because a mortgage that made sense two years ago isn’t necessarily the right fit today. And if you’re weighing up selling, we can help you think through the timing and what it means for your next move, rather than you having to guess from a news article.

We’re locals – based right here in Nelson-Tasman – and in most circumstances are advice is free (we are paid by the lenders). To make a free 20 minute appointment click here.

Frequently asked questions

Is housing more affordable in New Zealand right now?

Yes. As of the June 2026 quarter, Cotality’s figures show housing affordability has returned to its 20-year average, the best level in roughly a decade, driven by a lower house-price-to-income ratio, smaller mortgage repayments as a share of income, and faster deposit saving times.

What is the house price to income ratio in New Zealand in 2026?

It’s 6.7, meaning the average house price is about 6.7 times the average household income. That’s in line with the 20-year average and well down from the 2021 peak of 9.8.

How long does it take to save a deposit for a house in New Zealand?

On average, around 8.9 years to save a 20% deposit — slightly faster than the long-term average of 9 years. Using KiwiSaver as a first-home buyer can shorten this further for many people.

Is it a good time to buy a house in New Zealand?

Affordability conditions are more favourable than they’ve been in years, but whether it’s the right time for you depends on your income, deposit, goals, and how long you plan to stay put. It’s worth talking it through with an adviser rather than relying on the averages alone.

Why are some properties selling at a loss?

Nationally, 13.1% of properties resold at a loss in the June 2026 quarter, the highest share since 2012. This mostly reflects properties bought near the 2021 price peak now being resold in a more settled market, particularly apartments and properties in some regions.

Whether you’re wondering what better affordability means for refixing your current mortgage, whether now’s a good time to buy, or how these numbers stack up against your own situation, we’re happy to talk it through. Book a free chat with one of our advisers.

This is general information only. For personalised advice, please speak with a Castle Trust adviser.