Keeping a lid on house prices – housing supply outpaces population growth

Cotality’s latest Property Pulse report shows the supply of new homes in Wellington and Auckland outpacing population growth between 2019 and 2024.

In Wellington, the population actually declined 1% in the five years to 2024, while housing stock rose by 4.3%. This caused the number of residents per home to drop from 2.97 to 2.82.

Auckland's population grew by a robust 7% over the same period, but this was exceeded by an even stronger 10.3% increase in housing stock. This eased Auckland's occupancy rate from 3.45 to 3.34 per home.

“This easing in the physical supply and demand balance aligns with the weakness in Auckland's property values, although it is also worth noting that the recent construction mix in Auckland has been dominated by townhouses, which are smaller and have a naturally lower occupancy rate,” Kelvin Davidson, Cotality chief property economist says.