Kelvin Davidson: Cotality Chief Property Economist on housing affordability reaching a decade-best level

Housing affordability in New Zealand has improved to its best level in almost a decade, according to new data from Cotality. 

Lower property values, rising wages and easing mortgage rates have helped reduce pressure on buyers. 

Cotality NZ’s Housing Affordability report, covering Q4 in 2025, shows the national value-to-income ratio fell to 7.2 – the lowest level since a brief period in 2019 and before that 2016. 

Mortgage servicing costs have improved, with repayments accounting for 42% of gross median household income, down from a peak of 56% in late 2023. 

Chief Property Economist Kelvin Davidson told Mike Hosking that the housing market isn’t cheap and getting into it is not easy, but it’s easier than it’s been for quite some time.  

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