Overview
- Record FHB share: 28.8% of December purchases and 28.4% of Q4 purchases – the highest quarterly level ever recorded.
- Supportive financial pathways for FHBs: KiwiSaver remains an important source of deposit funds, while banks’ low‑deposit lending allowances continue to enable entry with less upfront capital.
- Other buyer groups show mixed momentum: Mortgaged multiple property owners continue to cautiously re-engage in the market, targeting lower-priced dwellings while ‘mover’ households adopt a wait-and-see approach.
First home buyers make hay as record market share caps strong finish to 2025
First home buyers have cemented their position as the most active buyer group[1] in New Zealand’s housing market, reaching a record share of purchases across the December quarter of 2025.
Cotality’s latest Monthly Housing Chart Pack shows first home buyers (FHBs) accounted for 28.8 per cent of property purchases in December and 28.4 per cent for the quarter overall - the highest on record, with the number of completed deals also remaining solid.
Despite national property value sending 2025 broadly flat, underlying conditions have become increasingly favourable for aspiring homeowners.
Easing mortgage rates, access to KiwiSaver funds, and the ability to utilise banks’ low‑deposit lending allowances have all supported a surge in FHB activity.
Some households are also now finding that the cost of servicing a mortgage is comparable to – or even lower than – paying rent.
Quarterly NZ % share of property purchases
Cotality Chief Property Economist Kelvin Davidson said the alignment of improved affordability, more flexible deposit pathways, and competitive lending conditions had created a unique window of opportunity for first home buyers.
“First home buyers are making the most of current market conditions.”
“With property values off their highs, mortgage rates easing, and support from KiwiSaver and low‑deposit lending, this group is well placed to take advantage of opportunities. For many, the gap between renting and buying has narrowed, making home ownership more achievable,” Mr Davidson said.
While first home buyers dominatedlate‑2025 activity, Mr Davidson said the broader buyer landscape was more uneven.
“Mortgaged multiple property owners, including smaller and newer investors, continued to re‑engage cautiously with the market.
“Lower mortgage rates and reduced cashflow top‑ups on rental properties have helped investors targeting lower‑priced or existing dwellings.
“However, the lurking influence of debt‑to‑income (DTI) ratio limits in2026 is expected to be an important consideration for investors over the coming year. The weakness of rents is an added challenge for investors, albeit great for tenants.”
“Meanwhile, relocating owner‑occupiers, or ‘movers’, remained quieter than usual with many households continuing to adopt a wait‑and‑see approach due to the cost and disruption of trading up in an uncertain economic environment,” he said.
[1] On the basis that debt-backed and cash multiple property owners are essentially different buyer segments, with different motivations and approaches
