Thousands of homeowners now selling at a loss as housing slump drags on
August 18, 2026
Summarised by Centrist
More than 13% of New Zealand properties sold during the June quarter changed hands for less than their owners had paid, the highest proportion recorded since 2012.
The losses are another consequence of the housing correction that followed the extraordinary property boom of 2020 and 2021.
A recent Cotality report found 13.1% of properties resold during the quarter made a nominal loss. The figures do not account for inflation, mortgage interest, renovations, rates or selling costs, meaning the true proportion of owners losing money on their investment is likely to be considerably higher.
New Zealand house prices rose by approximately 40% during the pandemic-era boom, fuelled by extremely low interest rates, government stimulus and a rush to buy before prices climbed further.
The Reserve Bank then rapidly increased interest rates to control inflation. House prices have since fallen by approximately 20% nationally from their late-2021 peak, with larger falls in parts of Auckland and Wellington.
Owners who purchased near the top of the market and now need to move because of separation, employment changes or financial pressure have little ability to wait for values to recover.
Longer-term owners are generally still selling at a profit because they bought before the pandemic surge. The losses are concentrated among more recent purchasers.
Even after sizable falls, housing remains expensive relative to incomes. The downturn has therefore inflicted losses on recent buyers without fully resolving the country’s wider affordability problem.
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