sank by<\/a> $82,500 in November and December to its lowest level in 12 months.<\/p>\nAdvertisement<\/p>\n
The mild deflation of New Zealand housing values came at the same time as CPI inflation accelerated to 3.1% in 2025:<\/p>\n
As a result, New Zealand home values continued to deflate swiftly in real inflation-adjusted terms.<\/p>\n
Advertisement<\/p>\n
Major bank ASB summarised New Zealand\u2019s housing market as follows:<\/p>\n
\u201cOn an annual basis, house sales turnover ended 2025 marginally higher than in 2024, while house prices were slightly lower than a year earlier\u201d.<\/p>\n
\u201cThe housing market in 2025 followed a trajectory that differed from what many economists had forecast at the start of the year\u201d.<\/p>\n
\u201cDespite 200bp of OCR cuts over 2025, which led to a substantial reduction in mortgage interest rates, the housing market has been slow to respond and has shown no significant improvement\u201d.<\/p>\n
\u201cThe ongoing imbalance between weak demand and strong supply remains the key factor causing house prices to trend sideways\u201d. <\/p>\n
Indeed, the ongoing weakness in New Zealand home prices comes despite sharply lower mortgage rates, which have fallen back to pre-pandemic levels:<\/p>\n
Advertisement<\/p>\n
The combination of falling prices and mortgage rates has dramatically improved purchase affordability in New Zealand.<\/p>\n
![\"NZ](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/01\/NZ-net-migration.png\")
<\/p>\n
Meanwhile, the collapse of immigration into New Zealand has sent rental inflation plummeting, benefiting tenant households:<\/p>\n
Advertisement<\/p>\n
The contrast with Australia, which still has historically high net overseas migration, could not be more stark.<\/p>\n
Home prices and advertised rents continue to rise swiftly in Australia, whereas growth has plummeted in New Zealand.<\/p>\n
Advertisement<\/p>\n
As a result, New Zealand housing has become increasingly affordable to purchase or rent, whereas it remains historically unaffordable in Australia.<\/p>\n","protected":false},"excerpt":{"rendered":"New Zealand experienced one of the biggest house price booms in the world during the pandemic. However, since…\n","protected":false},"author":2,"featured_media":438252,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":{"0":"post-438251","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/438251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=438251"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/438251\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/438252"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=438251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=438251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=438251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"NZ](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/01\/NZ-HPI.png\")
<\/p>\n