April property figures show first clear impact of rising living costs
Thursday, 14 May 2026
The first clear signs rising living costs are weighing on the housing market have emerged, with buyers becoming more cautious under the combined pressure of higher fuel prices, groceries, insurance and rates.
And it’s worse in areas with high vehicle dependency and lower average household incomes such as Hawke's Bay, Manawatu-Whanganui, and Marlborough, the latest property report from the Real Estate Institute of New Zealand’s April report says.
The report said it was the first month where cost-of-living pressures appeared to be materially influencing buyer behaviour.
The report showed national sales fell 7.9% year-on-year to 6262 in April. While softer than a year ago, the result remained close to the long-term historical average for the month.
Seasonally adjusted sales eased 2.1% compared with March, suggesting buyers were still active but taking a more measured approach.
Read more:
Five ways the Middle East conflict could impact NZ's housing market
Buyer caution keeps housing market subdued as sales fall again
REINZ said the slowdown reflected households becoming increasingly sensitive to everyday costs rather than a sharp retreat from the market altogether.
“April 2026 marks the first clear sign that the combined weight of cost-of-living pressures – higher fuel costs, food prices, insurance, and local body rates – began influencing buyer decisions in a meaningful way,” the report said.
Canterbury, Southland and Otago have continued to post relatively solid sales activity, supported by stronger local market fundamentals.
The report said the housing market was now moving into a testing mid-cycle position, with the initial shock from the overseas conflict giving way to a broader cost-of-living squeeze and the prospect of further interest rate rises through winter.
“Fuel costs are amplifying regional differences, particularly in vehicle-dependent areas, against a broader backdrop of rising living costs, including food, insurance, and rates. “
Political uncertainty ahead of the election was also beginning to affect market behaviour, particularly in Wellington where the public sector has a significant role in the regional economy, the report said.
Wellington’s house price index fell 2.5% annually, while housing inventory climbed sharply from 14 weeks to 19 weeks — the largest rise in unsold stock of any major market in the country.
Nationally, median house prices slipped 0.6% year-on-year to $775,000. Excluding Auckland, the median price was unchanged at $700,000.
Auckland’s median price increased by 2.5% year-on-year to $1,020,000, Wellington’s decreased by 0.9% to $765,000 and Canterbury’s rose 2.1% year-on-year to $710,000.
The four regions showing the highest growth were the West Coast up 42%, Southland and Northland up 6.2% and Gisborne up 4.3%.
It also showed Southland recording the strongest annual growth in the country, up 8%, while Canterbury rose 3%. Nationally, the house price index was down 0.9% year-on-year.
Auckland’s house price index fell 2.8% for the year, although its three-month median price edged up 1.2% to $1.022 million.
The number of properties for sale across the country rose 3.9% annually to 37,334 properties, while new listings increased 7.4% to 9139.
Properties continued to take a median of 42 days to sell nationally, virtually unchanged from a year ago.
The auction market accounted for 14.1% of all sales nationally. Auckland continued to lead the country in auction activity, with nearly a quarter of all homes sold under the hammer.
The report also highlighted growing concern about the direction of interest rates. While the Reserve Bank of New Zealand kept the Official Cash Rate unchanged at 2.25% in April, economists were increasingly expecting rate hikes later this year if inflation does not ease.
REINZ said the shift from falling-rate expectations to the prospect of higher borrowing costs could place further pressure on buyers and test whether demand can keep pace with growing housing supply through winter.