Housing market shifts as supply outpaces demand

Available rental listings on Trademe have surged to 12,400, a 60% increase from the previous year. Similarly, unsold housing inventory remains at 10-year highs, with a 20% increase compared to last year, particularly in Otago and Wellington.

This surplus in housing stock has tempered price growth, with rental prices stabilising after a 10% increase from late 2022 to early 2024.

Meanwhile, the housing market continues its two-year-long sideways trend as increased inventory limits price gains.

Cost gap narrows between renting and buying

The gap between the cost of purchasing a home and renting has narrowed, although buying remains more expensive, Jones said.

Currently, purchasing a median-priced house consumes 43% of household income, compared to 25% for renting.

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