NZ Housing Affordability Soars as Aussie Prices Remain High

New Zealand's housing market is experiencing a significant downturn, unlike its neighbor Australia. According to data from Antipodean Macro, New Zealand dwelling values have been falling for over four years, with a year-on-year decline of 0.4% in July.

This drop brings dwelling values down to levels seen in late 2017, a significant decrease of over 30% compared to their peak. The real inflation-adjusted value of New Zealand's housing market is now lower than it was during the same period in 2018.

Rents in New Zealand are also experiencing a decline, with a 0.1% fall in July. This trend has been ongoing for several months, and experts attribute it to the sharp decrease in net overseas migration, which clocked in at just under 18,000 in the 2025-26 financial year.

This situation is starkly different from Australia's housing market, where dwelling values remain historically high. Australian rents are also continuing to grow at a faster rate than wages, driven by strong immigration numbers.