NZ property investors fuel $25 billion economic engine, new research shows
Wednesday, 18 March 2026
Property investors are slowly returning to the housing market, and it turns out that may not be a bad thing ‒ with new research showing they contribute billions to New Zealand’s economy.
Analysis by Infometrics showed private residential property investors created an estimated $24.8 billion in GDP over the year to the end of March 2024. That amount equated to 5.9% of total GDP in 2024.
It also generated economic activity across every industry, and sustained 126,000 full time jobs, or 5% of all full time jobs in 2024, according to the analysis.
Infometrics was commissioned to do the research by the Property Investors Federation.
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But the consultancy used Stats NZ national accounts data and its own economic multiplier model to analyse investor spending on the maintenance and improvement of existing properties and the building of new properties.
Infometrics principal consultant Rob Heyes said he had no expectations going into the research, and was initially quite surprised by the findings.
“But once I dug into the research they made sense because of the size of the ‘residential property operation’ industry itself, and the fact its activity impacts on so many other industries.”
Investors contributed to the economy through spending on repairs, maintenance, upgrades and building new homes, he said.
“That spending flows through to builders, tradespeople, suppliers, and their staff, supporting jobs and local businesses, including financial services, retail and hospitality.
“The result is economic activity that spreads right across the country.”
Heyes estimated there were 317,000 private residential property investors based on numbers from Inland Revenue, and their activity directly or indirectly contributed to the $24.8b figure.
Of the GDP contribution, 43% ($10.8b) was created directly by investments in new and existing property, and other spending made as part of operating the business, the research showed.
Then, 33% ($8.1b) related to businesses that supplied materials and services to investors, and 24% ($6.0b) was created by investors, their staff, and staff at supplier businesses spending their earnings at New Zealand businesses.
While investors’ spend on maintenance and improvement ($4.1b) was much lower than their spend on new builds ($10.7b), it seemed to create more GDP per dollar in spending, he said.
“We attribute this to house maintenance and improvements being more profitable for the businesses involved than new builds which seem to run on very thin margins.
“But the number of jobs sustained by spending on the building of new properties far outweighs the jobs sustained by spending on maintenance and improvement of existing properties.”
The research also found that investors paid $1.12b in tax in the year to the end of March 2024.
Property Investors Federation spokesperson Matt Ball said the findings directly countered the narrative that residential property investors were “unproductive” and “speculators”.
“It proves what our members have known for years: what they do is real work that supports jobs, strengthens local communities, and underpins the wider economy.”
Investors provided a critical service by supplying and maintaining most of the country’s rental housing stock, he said.
“But providing rental housing doesn’t just produce economic activity, it’s an enabler of economic activity throughout the economy.”
Ball said the research was the beginning of a long-term programme to build a more informed, fact-based debate about the rental sector, and to counter misinformation.
“Our members are tired of being scapegoated by politicians who blame landlords for their housing policy mistakes.
“We are committed to growing the evidence base around the sector so we can contribute to developing sound housing policy which benefits investors, renters and homeowners alike.”
Infometrics’ research followed the release of Cotality’s latest buyer classification figures which highlighted that investors were returning to the housing market.
Mortgaged investors were responsible for 25% of sales in January, the highest level since early 2021, Cotality said.
In his latest survey of property investors economist Tony Alexander said sources indicated investors had a reasonable presence in the market.
But lower interest rates, higher consumer confidence, and expectations of a stronger economy were not leading to the lift in investor activity expected, he said.