Does size really matter?

In the New Zealand property market - yes, it does!

• Kiwis prepared to pay almost 50% more for a three-bedroom home
• Getting the bedroom/bathroom combo right can add up to half a million to a home’s price
• Renovations can pay dividends, but not all are created equal

Latest data from realestate.co.nz shows an extra bedroom can add anywhere from $150,000 to more than $450,000 to a home’s asking price. 

In 2025, the national average asking price for a two-bedroom home was $640,794. This increased to $844,009 for a three-bedroom home, an increase of 31.7%. But the real gains come with the addition of a fourth bedroom, with the average asking price increasing 44.1% to $1,216,635.

Vanessa Williams, spokesperson for realestate.co.nz, says the price increases highlight how additional space remains a key driver for property value. 

“Kiwis are still attracted to more space and see value in that, whether it’s to accommodate a growing family, work-from-home flexibility, or future-proofing an investment.”

However, it is the combination of bedrooms and bathrooms where the biggest gains can be seen. 

In 2025, the average asking price of a 3-bed 2-bath home was $987,609. This increased by almost 40% to $1,376,229 for a 3-bed, 3-bath home, a difference of $388,620. 

For a bigger home, the average asking price of a 4-bed, 2-bath home was $1,173,682 but increased 44% to $1,690,982 with a third bathroom, a difference of more than half a million dollars.

Not all upgrades are equal: know your market

Williams says for those homeowners considering a renovation, look at the bigger picture before picking up a hammer, because a reno isn’t always a sure-fire way to increase their sale price. 

"We know bedrooms and bathrooms affect average asking prices but before homeowners embark on a renovation, liveability needs to be factored in. An odd layout that adds a bedroom or bathroom but reduces living, dining, or entertaining space, or negatively impacts the flow within a home, is less likely to bring the gains owners are hoping for.”

“Not all renovations are created equal, as buyers are drawn to homes that suit their lifestyle. We always encourage homeowners to think about who they’re renovating for – themselves or future buyers.”

For media enquiries, please contact:

Hannah Franklin | hannah@realestate.co.nz

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