In just one decade, the New Zealand housing market has experienced a seismic shift.
Two-thirds of all homes in 2013 were priced and sold below $500,000. Fast-forward ten years and that figure has plummeted to just 14 per cent, marking a 51 per cent decline in market share.
However, it’s not simply a case of prices soaring. Rather, the market is tightening its grip, with the availability of properties within certain price brackets becoming increasingly scarce.
The trend is also evident in the unit market, where apartments and attached residences priced between $500,000 and $1 million dominate. This market segment has experienced a steady rise in transaction volumes, outpacing others by a significant margin.
Meanwhile, units priced below $500,000, once accounting for 77 per cent of transactions in 2013, now only make up 28 per cent. This shift underscores a growing affordability crisis, as fewer transactions occur in the lower price range. Luxury units valued in excess of $1 million have remained relatively stable compared with other price brackets. In sum, the data shows a housing market becoming increasingly out of reach for many buyers.