North to South: Kiwis chase affordability, lifestyle shift
New Zealand’s internal migration patterns are reshaping New Zealand’s property market, with new Trade Me Property data revealing growing interest in the South Island – a trend supported by the latest 2023 Census findings.
Census confirms shift south
Around 86,000 people moved from the North Island to the South Island between 2018 and 2023 – approximately 30,000 more than those who made the move north, according to Stats NZ.
Trade Me Property customer director Gavin Lloyd (pictured) said the data highlights how population trends are beginning to influence market dynamics.
“For years, the North Island, particularly Auckland, has been the powerhouse of the property market. However, with more Kiwi seeking lifestyle changes and potentially more affordable options, the South Island is certainly gaining ground,” Lloyd said.
North-South price divide closing
While the North Island still commands higher prices, Trade Me data shows that the average asking price gap between the islands has been shrinking since late 2021.
“In December 2021 there was an average asking price difference of more than $350,000 between the North and South islands, but from late 2021 we saw that gap start to close,” Lloyd said.
“Last month the average North Island asking price was just over $182,000 higher than the South Island – a significant bridge of the divide we saw in late 2021.”
Affordability driving migration trends
Lloyd said the narrowing gap may reflect a response to affordability pressures, especially in North Island urban centres.
“This migration trend could well be a response to the cost of living and housing affordability challenges faced in the North Island,” he said.
“We’re also hearing from a lot of agents in the South Island that they’re seeing an increasing number of enquiries from Kiwi in the North looking to relocate. Our data is backing this up, with listing views on properties in Canterbury in May up 7% year-on-year.”
According to Stats NZ’s Rosemary Goodyear, lower housing costs and university access are key drivers of migration to Canterbury, where Christchurch – with the lowest average rents among major cities – is attracting more young people. The city now hosts 25,000 students and has seen a 6% lift in its 15-24 population.
South Island appeal grows
Trade Me’s latest figures suggest lifestyle and cost advantages are attracting more buyers to southern regions, with interest increasing across a range of property types.
“The South Island has plenty to offer Kiwi with vibrant urban centres like Christchurch to the stunning natural landscapes of Otago and Southland, often at a more accessible price point,” Lloyd said.
