The Most Affordable Housing In New Zealand

As of 2025, the median house price in New Zealand is around $750,000, a significant increase from $405,000 in 2015. Despite fluctuations, the long-term trend shows steady growth. While it’s challenging to buy in major cities like Auckland, Wellington, and Christchurch, there are regions where entry prices are much lower, making homeownership and property investment more accessible.

If you’re finding it difficult to buy in the area you currently live in, rentvesting—renting where you want to live while investing elsewhere—could be a viable option. This approach allows you to live in a more desirable location while purchasing an investment property in a more affordable region.

For example, a $750,000 budget might not get you far in central Auckland, but in other parts of the country, you could secure a property for significantly less and still generate rental income. Additionally, rentvesting can offer better yields and flexibility, especially for those whose jobs provide housing or who have other living arrangements.

According to recent data, the most affordable suburbs and districts include:

• Mataura, Gore – The most affordable suburb in New Zealand, with an average house price of $297,000.
• Greymouth (West Coast) – Several suburbs here have some of the lowest house prices in the country.
• Invercargill & Clutha – Both regions offer multiple affordable property options.
• Ruapehu District – An attractive option but heavily reliant on tourism and skiing.

While these areas offer low entry prices, buyers should consider economic factors. Many smaller towns depend on industries such as dairy farming or tourism, which can be volatile and impact housing demand.

Investing in regional areas can be lucrative, but it comes with risks. Here are key considerations:

Pros:

• Lower Entry Costs – More affordable properties mean a lower deposit requirement.
• Potential for Growth – Some regions are seeing significant development and infrastructure improvements, which could drive capital gains.
• Strong Rental Demand – Population growth and job opportunities in certain areas support rental demand.

Cons:

• Economic Dependence – Many small towns rely on one or two industries. If these decline, property values may drop.
• Limited Tenant Pool – Finding tenants in low-population areas can be challenging.
• Capital Growth Uncertainty – Unlike major cities, some regions may not see consistent long-term value increases.

For example, Ruapehu is heavily reliant on ski tourism, and with climate change affecting snowfall, the viability of long-term investment there is uncertain. Similarly, towns like Invercargill depend on industries such as aluminium smelting, which can be subject to global economic shifts.

Despite market corrections, some regions are experiencing strong property value growth. Over the past 12 months, the highest growth rates have been recorded in:

• West Coast – 24.3% increase ($444,000 average house price)
• Otago – 15% increase ($650,000 average house price)
• Southland – 12.5% increase
• Canterbury – 10% increase ($550,000 average house price)
• Gisborne – 8% increase

These increases are often driven by local infrastructure projects, commercial developments, and new housing developments. Keeping an eye on such factors can help investors identify high-growth areas.

• If homeownership in your current city is unaffordable, consider buying in regional areas where entry costs are lower.
• Rentvesting is a viable strategy for those who want to live in a high-cost area while investing elsewhere.
• Affordable areas exist, but they come with risks related to economic reliance and rental demand.
• Some regions are seeing double-digit property growth, driven by infrastructure and development projects.

Before making any decisions, it’s essential to speak with a mortgage broker to understand your financing options. At Lighthouse Financial, we can help you assess your situation and find the right lending solution to achieve your property goals.

If you’re interested in exploring investment opportunities or purchasing your first home, reach out to Lighthouse Mortgages today!

If you’d like to learn more, check out these other episodes below