Data shows investor resurgence and steady housing recovery
New data from Cotality’s Buyer Classification Pulse shows mortgaged multiple property owners (MPOs) – including investors – are steadily returning to the market after two years of subdued activity.
The lift follows a string of regulatory and financial changes that have improved investment conditions, including the shorter Brightline Test, reduced loan-to-value ratio (LVR) requirements from mid-2024, and the full reinstatement of mortgage interest deductibility from April 2025.
Investors paying less than last year
Nationally, mortgaged MPOs paid a median of $759,000 for property so far in 2025 – slightly lower than $770,000 last year. That compares with a $700,000 median for first-home buyers (FHBs) and $880,000 for movers.
The small dip in price doesn’t reflect cheaper property choices. In fact, investors’ preference for standalone houses has edged up to 67% of purchases in 2025, from 66% in 2024. FHBs and movers remain more house-focused, with standalone dwellings accounting for 75% of their activity.
New builds remain key to investor strategy
Around 30% of all new-build purchases this year have come from mortgaged MPOs, only slightly below 2024’s 31%. That’s still well above the 25% share in 2020, before Labour’s property tax changes reduced investor incentives.
New builds continue to attract investors because they’re exempt from LVR and DTI restrictions, though they often come with higher upfront prices and fewer renovation opportunities.
However, Alexander noted that most landlords still prefer established properties, with interest in new builds continuing to decline.
Investor activity rising across the regions
Mortgaged MPOs now account for nearly 24% of national purchases, up from lows of around 22% between 2022 and 2024, Cotality data showed.
While first-home buyers remain dominant in Wellington, investor demand has strengthened elsewhere:
- Hamilton: up to 29% of purchases
- Christchurch: 27%
- Auckland: 26%
- Tauranga and Dunedin: both showing higher investor shares
Smaller regions are also recording notable lifts. In Gisborne, investor share jumped from 23% to 30%, Invercargill rose from 20% to 27%, while Rotorua (28%) and Hastings (25%) both exceed the national average.
The return of mum and dad investors
Cotality’s analysis shows that the resurgence in MPO activity is being driven by smaller-scale investors, often dubbed “mum and dad” landlords – those with two to three properties in total.
Rather than large-scale investors, these buyers are leveraging equity in their own homes or across small portfolios to re-enter the market. With borrowing costs lower and regulatory settings more favourable, this group is quietly reshaping the early stages of the housing recovery.
For mortgage advisers, the trend suggests a more confident investor base, supported by easier lending conditions.
Read the full Cotality analysis here.
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