Kiwibank: Its still tough - but not as tough as it’s been - to get on the property ladder
Tuesday, 2 December 2025
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Getting on to the property ladder is tough, and when Deorna Paul and her partner were trying to buy their first home there were times she started to lose hope.
But although the process was lengthy and frustrating, they kept going, and now the couple are due to settle on a home in Moerewa in the Far North in mid-December.
Paul said saving the deposit was hard, and once they had their finances in order, it took time to find a house that was right for them and their budget.
The builders' report on one of the houses they were interested in revealed big problems, and at one point they considered buying with family members, she said.
“But in the end we were able to buy a home in the area we wanted, and we were able to stick to our price range around the $420,000 mark. And it’s a four bedroom home with a garage and a unit. so it’s bigger than what we have now.”
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It was a stressful process, but she learnt a lot through it, and is pleased they stuck it out long enough to become homeowners.
Paul is not alone in her determination to buy a home, nor in finding it difficult to do so.
Eighty-five percent of New Zealanders believe owning a home is a core part of the “Kiwi dream”, according to Kiwibank’s new report into the state of home ownership.
It also showed that more than 50% (57%) of non-homeowners believed they have been shut out of the housing market, and that 31% did not think they would be able to own their own home.
But the amount of non-homeowners who felt locked out of the market had fallen 6% from 63% in last year’s report, and 45% said lower interest rates made ownership more achievable than it was last year.
Kiwibank chief executive Steve Jurkovich said the report suggested a shift in mood, which could be because the headwinds that were making people pessimistic about home ownership had changed.
Over the past year, there had been more commentary than ever before about OCR cuts and interest rates coming down, and people were responding to that prospect, he said.
“Also, there haven't been as many stories about people buying a house for a million bucks and selling it six months later for $1.4 million.
“So people probably aren't feeling like the market's galloping away on them at that headline level, and that helps.”
Some big obstacles remained for aspiring home owners, and the report found the biggest cited was the cost of living, at 60%, up 2% from last year. Respondents also pointed to high house prices and the struggle to save for a deposit as significant obstacles.
Jurkovich said the fact people now saw cost of living pressures, which tied into saving a deposit, as the major barrier to buying a house was an interesting change.
“Buying a home isn’t always easy, but we’re seeing incredible resilience from those determined to get on the ladder. They’re willing to adapt and compromise to achieve their dream of home ownership.”
To reach their dreams, 58% said they’d accept a smaller home, like an apartment, while 45% would relocate to a different region, and 36% would look at non-traditional pathways like co-ownership, he said.
“People are more aware that you don't necessarily get your dream home when buying for the first time, and they are more open-minded about exploring what their options are.”
First home buyers were currently the most active buyers in the market, particularly in quieter markets like Wellington and Christchurch, the latter of which had quality new stock and attractive living conditions.
“Looking ahead, lower interest rates and recent loan-to-value ratio changes are expected to open up more opportunities for home buyers.”
Kiwibank’s report comes hot on the heels of ASB’s latest housing confidence report, out on Monday, which showed 28% of respondents felt now was a good time to buy, the highest level since mid-2010.
A number of conditions were contributing to positive views on entering the housing market, ASB’s economists said. They included high levels of housing inventory, cyclical lows in mortgage rates and cyclical lows in house prices.
Meanwhile, when announcing its latest OCR cut, the Reserve Bank said it expected future growth in house prices to be moderate.
“Upcoming reductions in mortgage LVR requirements are unlikely to have a material effect on house prices, especially with debt-to-income restrictions now in place.”
House price growth has been subdued over recent months, with the latest Real Estate Institute figures showing the median national price down 1.1% annually to $786,000 in October.