27% Real Fall Makes NZ Housing Crash Second-Worst in 46 Years

New Zealand's housing market has experienced its second-largest real drop in history over the past four and a half years, according to Infometrics' analysis of data from 75 years.

The true fall is 27% in real terms once inflation is stripped out, compared to the commonly cited 17% nominal fall. This makes the current downturn the second-largest real drop and the second-longest peak-to-trough decline on record.

The only episode worse than today's slump was the Muldoon-era downturn of 1974-80, which saw a 38% real fall.