New data suggests the ‘forever home’ may be a thing of the past, with the ‘seven-year itch’ now closer to five.
The concept of the ‘forever home’ appears to be fading in New Zealand, with new data from realestate.co.nz revealing that Kiwis now hold onto their homes for an average of just five and a half years before selling.
The data, which looks at the amount of time that property is held onto until it is re-sold, shows, on average, people hold properties for the least time in Auckland.
The time between sales for properties in Auckland was approximately five years and three months. At the other end of the scale, Kiwis held onto their properties for the longest in Taranaki (six years and five months) and Manawatu/Whanganui (six years and four months).
"People move for many reasons—employment opportunities, the desire for more space, the need to accommodate aging parents, or even downsizing after the kids have left. This frequent movement is likely a reflection of changing lifestyle needs and opportunities across New Zealand,” says Vanessa Williams, realestate.co.nz spokesperson.
The movers: Auckland, Waikato, Nelson & Bays, and Bay of Plenty
Whether it's the pace of the city, the pull of keeping up with the Joneses, or the appeal of various lifestyle changes, Auckland has seen its properties change hands the most often.
Williams says as our most populated region, Auckland’s size is likely a factor:
"Auckland offers good employment opportunities while catering for lifestyle changes of all kinds, including for those looking for their second home or wanting to downsize into retirement. This could explain why properties are sold more often in this region."
Other regions where property moved more quickly than the national average were Waikato, Nelson and Bays, and Bay of Plenty, where the average time between sales was five years and four months.
The districts where properties were sold the most often were Selwyn in Canterbury (four years and nine months), Franklin in Auckland (four years and 10 months), the Waikato district (five years), and Papakura in Auckland (five years).
Williams notes that it’s no surprise that the districts with the fastest sales are in Canterbury, Auckland, and Waikato.
"Buying a property is so often an emotional decision. And in these larger regions, where there is more to choose from, the chances of wandering into an open home and falling in love or spotting a for sale sign on a house in the perfect location are probably higher.”
The stayers: Taranaki, Manawatu/Whanganui, Gisborne, West Coast, and Hawke's Bay
Kiwis held onto their homes longest in Taranaki (six years and five months), Manawatu/Whanganui (six years and four months), Gisborne (six years and three months), West Coast (six years and two months), and Hawke's Bay (six years).
At a district level, properties in South Taranaki were held the longest (six years and eight months), followed by Tararua in Manawatu/Whanganui (six years and six months) and Ruapehu in Central North Island (six years and six months).
Williams says smaller towns tend to have fewer properties available for sale:
"In smaller regions, limited housing options often lead people to stay in their homes longer while waiting for the ideal property to hit the market," says Williams. "In addition, close-knit communities and businesses like farms can create a deeper connection to the area, making people less inclined to move frequently."
But what about the financial gains? Does it pay to stay, or should you go?
All regions saw a lift in their average asking prices, regardless of how long properties were held between sales. However, there were some regional differences.
Five years and three months ago, in June 2019, the average asking price in Auckland was $929,742; in September 2024 it was 12.2% higher at $1,042,883. In Waikato, the increase was more substantial, with average asking prices rising 32.6%, from $609,272 in May 2019 to $808,153 in September 2024.
"Aucklanders have been the fastest to move on, but of all regions, they have seen the smallest financial gain over the last five and a half years."
“Holding for longer can sometimes mean bigger gains, but many factors can impact this, including market conditions, economic factors, legislative changes, your region, and demand in your area," says Williams.
The biggest increases in average asking prices over the average selling period were seen on the West Coast, where prices rose by 97.9% over six years and two months. In Gisborne, where homes were sold on average every six years and three months, prices increased by 79.1%. In Manawatu/Whanganui, where properties changed hands every six years and four months, prices rose by 76.7%.
Ultimately, Williams urges people to buy based on their personal circumstances, rather than trying to predict what the market might do.
*Based on the average asking price in September 2024 minus the average time between sales for the region, i.e. In Auckland, the average asking price in September 2024 was $1,042,883 and the average asking price 5 years and 3 months ago, in June 2019 was $929,742. All prices are seasonally adjusted and 80% truncated.
More than a million New Zealand homes have never been sold
We may be a nation of property fanatics, but well over a million homes have never gone up for sale on realestate.co.nz, despite the site listing 935,048 individual properties since records began 17 years ago.
"Statistics New Zealand data from September 2024 estimates there are just over 2 million private dwellings in New Zealand, meaning there are more than a million homes that have been in the same hands since realestate.co.nz records began 17 years ago,” says Williams.
She notes that Kiwis tend to have a strong connection to property and place.
"It will be interesting to look back again in another decade or two and see, as lifestyles change if we see a similar percentage of homes staying with the same owners," adds Williams.
For more on this story, tune in to Vanessa Williams talking to Frances Cook on her Making Cents Podcast here.
This podcast is available on Apple, Spotify, iHeart Radio or wherever you get your podcasts.
For media enquiries, please contact:
Liz Studholme | liz@realestate.co.nz
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