Kiwi Buyers Show Willingness to Adapt in Tight Market

New Zealand homebuyers are more willing to make sacrifices to get into the market than their counterparts in other countries, according to Cotality's Consumer Sentiment Report for Q2 2026. The survey found that 68% of Kiwi respondents had considered or would consider taking a smaller mortgage, the highest among the five markets surveyed, and 78% would trim lifestyle spending.

The report also noted that buyers in Australasia faced more acute affordability strain than those in the United States, with 59% of New Zealand respondents open to buying a smaller home. The median mortgage rate that would bring them into the market was 4.9%, level with Australia and above the 4.5% average across all five countries.

However, borrowing costs are moving in the opposite direction, with the Reserve Bank lifting the official cash rate to 2.75% on September 2nd, its second consecutive increase, and forecasts pointing to a further rise to 3% by December. Cotality chief economist Selma Hepp warned that holding out carries its own costs, saying 'It's expensive to buy a home. But so is renting.'