new research<\/a> from Cotality and Westpac shows that continued through the start of this year, too. <\/p>\nOver the past year, first-time buyers have purchased 24,800 properties – the highest annual number since the year to the third quarter of 2021. <\/p>\n
“Whether you look at absolute numbers or relative share, it’s all pretty positive,” said Cotality economist Kelvin Davidson. <\/p>\n
He said people were also getting more house for their money. <\/p>\n
More than 75% of purchases were of standalone houses, and the median price paid was $720,000. <\/p>\n
“The median price so far has gone up to $720,000 from $700,000 last year but that’s not a big increase\u2026 there’s a rising share of standalone houses among first-time buyer purchases. They’re getting bang for their buck in a market that’s titled in their favour with lots of listings, house prices down, interest rates lower than they were a couple of years ago.” <\/p>\n
But there was a lot of regional variation within that number. <\/p>\n
The highest median price paid by first-home buyers was $900,000 in Auckland, was followed by a median $733,000 in the Bay of Plenty and $730,000 in Wellington. <\/p>\n
The lowest median was $407,500 on the West Coast and $489,000 in Southland. In Canterbury, they paid $655,000. <\/p>\n
“In a provincial market what first-home buyers are buying is pretty representative of the houses that exist. A lot of first-home buyers in rural areas would be buying three-bedroom standalone houses. That’s what’s there but there would be differences in other markets such as Auckland where there’s a broader choice.” <\/p>\n
Davidson said in the middle 40% of the market by price, first-time buyers were responsible for about 30% of purchases, compared to 21% in 2015. <\/p>\n
The median price for first-time buyers was significantly higher than the lower quartile price for all buyers, of $600,000. “The ‘typical’ first-home buyers doesn’t always enter at the bottom of the market and work their way up. Many actually enter the market well above the lowest tiers of the ladder. <\/p>\n
“There’s actually pretty strong data that a lot of them enter halfway up the ladder.. the median price being paid by first-time buyers is a long way above the lower end of the spectrum across all buyers.” <\/p>\n
In many cases, buyers were taking out loans with deposits of less than 20%. Westpac said its record showed the average loan-to-value ratio for first-home buyers was 81%, up from less than 77% in 2024. <\/p>\n
Davidson said KiwiSaver was a big help for most buyers. <\/p>\n
Lower interest rates were also helping. In most parts of the country (excluding Auckland), minimum mortgage payments are now around $130 a month lower than they were this time last year, and $820 a month lower than they were back in 2024. <\/p>\n
In Auckland, where first home prices tend to be much higher, the fall in mortgage costs has been even larger. Minimum mortgage payments are now around $180 a month lower than they were this time last year, and they’re around $1100 lower than they were back in 2024. <\/p>\n
The calculation was based on an average price first-home with 90% loan fixed for a year with a 20-year loan term. <\/p>\n
Davidson said many of the supportive factors for first-home buyers were likely to remain in place. <\/p>\n
“Reduced interest rates, KiwiSaver, loan-to-value allowances\u2026 it doesn’t look like house prices are going anywhere either. Mortgage rates are creeping up, so that’s a consideration for would-be first time buyers. But I think the buying window that’s been open for quite a long time now… is probably still going to be there for a while if house prices sort of stay broadly flat and the LVRs stay open.” <\/p>\n
He said people who could cope with interest rates pushing up a bit and who were confident in their jobs would see opportunities. <\/p>\n
“There are a lot of listings out there. Sellers are willing to do a deal to keep moving on. So I think first time buyers have things in their favour for a little while yet.” <\/p>\n
Median first-home buyer price – Q1 2026 <\/p>\n
Northland: $615,000Auckland: $900,000Waikato: $695,000Bay of Plenty: $733,000Gisborne: $600,000Hawke’s Bay: $625,250Taranaki: $560,000Manawatu-Whanganui: $524,000Wellington: $730,000Tasman: $712,000Nelson: $629,500Marlborough: $585,000West Coast: $407,500Canterbury: $655,000Otago: $620,000Southland: $489,000<\/p>\n
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