The inaugural Cotality-Westpac NZ First Home Buyer Report draws on Cotality’s extensive housing market data, as well as Westpac’s information about borrowers, to offer fresh insight into the purchasing behaviours, property preferences and financial profiles of New Zealand’s first-time home buyers (FHBs).
The report shows the number of first home buyers has picked up in recent years, accounting for nearly 25% of all property purchases across the country between January and April 2025 — well above the long-term average of 21–22%.
It also found that the average age of first home buyers in New Zealand is rising, with new data showing Auckland buyers now average 37 years old, 36 in Wellington, and 35 in Christchurch — each around two to three years older than in 2019.
“This shift partly reflects conscious lifestyle choices — such as travelling, building careers, or starting families — but housing affordability remains a key factor,” said Westpac NZ Senior Economist Satish Ranchhod.
“Even with prices well below their 2022 peak, getting onto the property ladder still takes time, especially in larger centres like Auckland where prices tend to be higher.”
Despite this later entry into the market, FHBs are currently getting more bang for their buck.
More than 75% of FHB purchases so far in 2025 have been standalone houses — the highest share since 2020 — and the median price paid has held steady at $700,000, unchanged from the past two years and lower than 2022’s $719,000.
“First home buyers may be older, but they’re entering the market with a clear plan and strong decision-making,” said Cotality Chief Property Economist Kelvin Davidson.
“They’re capitalising on their ability to tap into KiwiSaver, abundant listings, modest price growth and accessible finance to secure better homes in many cases. Making full use of the low-deposit lending allowances at the banks is another support for FHBs.”
“The big drop in interest rates over the past year has been a key factor that’s helped more New Zealanders into their first home,” said Ranchhod.
“Fixed mortgage interest rates are now around 170 to 200 bps lower than this time last year. For those buying an averaged priced first home, those lower interest rates could cut their monthly mortgage costs by around $800.”
Townhouses have made up 18% of FHB purchases to date in 2025, a higher share than among all buyers (15%), while only 2% of FHBs bought apartments and 3% opted for lifestyle blocks — compared to 6% in each category across the wider market.
The data also confirms that many FHBs are not entering at the bottom rung: while the FHB median price is lower than the overall buyer median of $780,000, it is significantly higher than the lower quartile of $585,000.
Spotlight on the main centres
Looking at New Zealand’s major cities, FHB activity has been elevated across the board.
The wider Wellington area leads the way, with FHBs accounting for 36% of purchases so far in 2025 — around 7 percentage points above the area’s long-term average. Hamilton follows closely at 30%, with Dunedin at 28%, Auckland 27%, and Christchurch 26%. Tauranga, while slightly lower at 21%, still sits about 4 points above its historical norm.
Standalone houses continue to be the dominant purchase type in most main centres.
In Dunedin, 90% of FHBs have bought standalone homes this year, with Hamilton and Tauranga both close behind at 89%. However, the share is comparatively lower in Auckland (64% vs an average of 67%), Wellington (67% vs 73%), and Christchurch (66% vs 77%) — likely reflecting both greater availability and affordability of smaller dwellings, including townhouses and apartments.
Price data reinforces the trend that first home buyers are typically entering the market above the lower rungs but below the peak.
In Auckland, the median FHB price so far in 2025 is $903,000 — $127,000 below the all-buyer median, but $114,000 above the lower quartile. FHB median prices are $767,000 in Tauranga, $740,000 in Wellington, $705,000 in Hamilton, and lower again in Christchurch and Dunedin.
Looking ahead
Cotality projects that national property sales will increase from 82,000 in 2024 to around 92,000 in 2025, with modest growth in values over the calendar year – perhaps 5% or a bit above. Although FHBs may see their market share edge down later in the year as other buyer groups re-enter the market, the total number of first home purchases is expected to rise.
“Market conditions continue to favour first home buyers — from abundant listings and pricing power, to accessible finance and the ability to use KiwiSaver towards a deposit,” Davidson said.
“While challenges remain, the opportunity to buy better for less is firmly within reach. It’s true that paying rent is generally cheaper than a mortgage, and it’s never easy to get that first home. But the security of tenure provided by owner-occupier clearly remains a strong motivation for first home buyers.”
Download the First Home Buyer Report
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