Thinking about buying a home in New Zealand but not sure where? From the sweeping seascapes of Cape Reinga in the north to the grassy, mountainous Greenhills in the south, there are so many beautiful places in the country that settling on one location can seem like an impossible task. So, to help narrow down your search, let’s start with the places with the most affordable homes…
Over the past decade, New Zealand’s median house price has increased from $454,000 to $775,000, reflecting an average annual growth of 5.49% [1]. But while property prices have risen across much of New Zealand, there are still pockets of affordable options – particularly on the South Island and certain urban areas.
The most affordable city in New Zealand
According to recent research [2], Invercargill is the most affordable city for home buyers. With 14 suburbs where average house prices sit below $500,000, it offers more budget-friendly options than any other city in the country.
Appleby, Invercargill’s cheapest suburb, has an average property price of around $353,000. Other affordable suburbs include Bluff, Kew, Clifton, Strathern and Georgetown, with prices typically in the $300,000s.
Invercargill is a great place to live, offering a laid-back lifestyle with good schools, a strong sense of community and plenty of green spaces. It has all the modern amenities you’d expect, including Southland Hospital, and easy access to natural attractions like Stewart Island and Fiordland National Park. It is also known for its excellent tertiary institutions, such as the Southern Institute of Technology, which offers a range of programmes with low or no tuition fees for domestic students.
Where else can you find homes under $500,000?
OneRoof’s analysis of 859 suburbs found that 81 have average house prices below $500,000. The most affordable locations – with property values ranging from $306,000 to $324,000 – include:
Mataura (Gore)
Mataura is a small town with a rich agricultural heritage and close proximity to Gore – a hub for arts and cultural events, including New Zealand’s largest country music festival.
Patea (South Taranaki)
Patea is a historic town known for its breathtaking coastline and the famous Patea Māori Club. It’s a peaceful location with a strong community spirit.
Kaitangata (Clutha)
Kaitangata is a small town offering plenty of outdoor pursuits like fishing and hiking along the Clutha River. The area has received international attention for its affordable housing schemes [3].
Wairoa (Hawke’s Bay)
Located near the Mahia Peninsula, Wairoa is ideal for those who like to be by the sea. It is also close to Rocket Lab’s space launch site.
Runanga (Grey)
A former mining town on the West Coast, Runanga is just a short drive from Greymouth and offers easy access to beautiful natural landscapes and adventure sports.
The most affordable regions
While many of the cheapest homes are in rural or small-town settings, 29 of the 81 affordable suburbs are in urban areas, offering better job prospects and better access to amenities.
The West Coast and Southland are among the most affordable regions, with the average house selling for around $500,000.
Invercargill is the most affordable city for home buyers
Affordability in larger cities
Beyond Invercargill, some of New Zealand’s other major cities still have affordable suburbs:
Christchurch
Phillipstown, Aranui and Linwood all have homes priced below $500,000.
Christchurch has a rapidly growing economy, world-class healthcare and a strong education sector, including the University of Canterbury.
Dunedin
South Dunedin, Forbury, Caversham, Calton Hill and Liberton offer affordable housing options.
Dunedin is home to the University of Otago, New Zealand’s oldest university, and is known for its heritage architecture and thriving student community.
Wellington
Wellington Central remains relatively affordable, with property prices averaging $483,000.
New Zealand’s capital offers job opportunities in government and the tech and creative industries. It also boasts excellent public transport and access to Wellington’s scenic harbour.
Summary
While property prices have surged in many parts of New Zealand, there are still affordable options if you know where to look.
Whether it’s Invercargill for its unbeatable prices, Christchurch or Dunedin for city living or a smaller regional town for a more laid-back lifestyle, there are opportunities to secure a home within a reasonable budget.
For help buying property in New Zealand, download the New Zealand Buying Guide.
Sources:
[1]: https://www.opespartners.co.nz/property-markets
[3]: https://www.odt.co.nz/regions/south-otago/town-offer-affordable-homes
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