Despite higher interest rates and tighter lending conditions over recent years, first home buyers continue to play a leading role in New Zealand’s property market. The latest data shows their share of purchases remains historically high, reinforcing their importance in driving market activity.

Rather than retreating, first home buyers have stepped into the space left by more cautious investors and movers.

First Home Buyers Hold a Strong Market Share

Over the most recent quarter, first home buyers accounted for around 28% of all property purchases nationwide. This places them near the top of their long-term range and well above levels seen during many previous market cycles.

This sustained presence highlights the role improved affordability, KiwiSaver withdrawals, and targeted lending allowances have played in supporting new entrants.

Investors More Active, but Still Below Past Peaks

Mortgaged multiple-property owners have made a gradual comeback, lifting their share of purchases to the mid-20% range. However, this remains below the peaks seen during the height of the previous boom.

Investor activity has been concentrated among smaller and more experienced buyers, often targeting lower-priced properties where yields are more attractive.

Movers and Other Buyers Remain Subdued

Owner-occupiers upgrading or relocating — commonly referred to as movers — continue to account for a smaller share of purchases than in stronger market phases.

This reflects lingering caution, particularly in higher-priced centres, as well as a preference among many households to delay major decisions until economic and political uncertainty eases.

What’s Driving First Home Buyer Strength

• Improved affordability following price corrections
• Greater access to KiwiSaver funds for deposits
• Bank low-deposit lending allowances supporting entry-level buyers
• Reduced competition from highly leveraged investors

Together, these factors have kept first home buyers at the forefront of market activity.

A Market Anchored by New Entrants

The strong presence of first home buyers has helped stabilise the market during a period of adjustment. Their activity provides a base level of demand that supports sales volumes, even when other buyer groups remain cautious.

This dynamic has contributed to the market shifting from correction toward consolidation.

The big takeaway

First home buyers continue to be one of the most important forces in New Zealand’s property market. Their sustained participation has helped underpin activity through the downturn and remains a key reason the market has avoided a deeper slide.

As confidence improves and lending conditions ease, their influence is likely to remain central to how the next phase of the market unfolds.

Source: Cotality – NZ Monthly Housing Chart Pack, December 2025 / January 2026