Advisers juggle FHB demand, investor resurgence and wary movers
First-home buyers and small property investors are underpinning New Zealand’s housing market, even as overall sales and prices remain subdued, according to the latest Cotality report.
Nationally, first-home buyers (FHBs) took more than 27% of purchases in Q1 2026, comfortably above their usual share of about 22%. In key centres, their presence is stronger again – around 30% in Auckland, 33% in Hamilton and 37% across greater Wellington, with both Upper and Lower Hutt at roughly 41%.
Lower purchase prices and softer mortgage rates are lifting borrowing capacity, while KiwiSaver access and more flexible deposit settings are keeping demand strong. With the national median value still 1.3% below a year ago and 17.1% under the early 2022 peak of $968,333, affordability remains relatively favourable for first-home buyers even after recent monthly gains.
Under current LVR rules, more than half of recent FHB loans have been written with less than 20% equity, widening access for borrowers who would otherwise struggle to save a full deposit.
Smaller investors return as cashflow improves
Mortgaged multiple property owners (MPOs) have also come back from their recent troughs. From lows of 21% of purchases in mid‑2023 and mid‑2024, their market share has lifted to around 24%, close to its long‑run norm. The rebound is being led by newer investors adding a first rental, with the three–to–four property group also recovering.
Lower prices and mortgage rates, plus the reinstatement of full interest deductibility on investment loans, have sharply cut the “top up” required from other income. A typical new investor who once had to find $400–$450 a week when mortgage rates topped 7% is now looking at closer to $150–$200, even with higher insurance and council rates. That shift is critical for brokers structuring deals for yield‑sensitive property investors.
Cautious movers linger on sidelines as FHBs and investors lead
Relocating owner‑occupiers remain cautious, with movers at about 26% of activity, below their longer‑run share, reflecting subdued confidence even after recent modest value gains
As the economy and job security improve, movers are likely to re‑engage – potentially trimming FHB share even if total sales and loan volumes rise. In the meantime, brokers’ strongest opportunities lie with job‑secure first‑home buyers and investors. Many will be keen to lock in today’s mortgage rates ahead of the next phase of the cycle.
Read the Cotality report here.
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