Houses vs Apartments: Which delivers better value over time?

New data from realestate.co.nz reveals that houses typically deliver stronger long-term price growth than apartments, but the gap is not as wide as many might expect. 

On average, Kiwis move every five and a half years. During the five-and-a-half-year period between May 2019 and November 2024, both houses and apartments saw similar levels of growth. Over this time, the average asking price of houses increased by 29.6%, from $650,839 to $843,208. Meanwhile, apartments saw an increase of 27.1% over the same period, from $590,720 to $750,611. 

Looking back 17 years ago, to November 2007, the gap widens, with houses seeing bigger increases. Between November 2007 and November 2024, the national average asking price for houses increased by 102.6%, from $416,173 to $843,208. In comparison, apartments saw an 82.8% increase during the same period, rising from $410,516 to $750,611. 

Vanessa Williams, spokesperson for realestate.co.nz, attributes the difference to land value: “Houses have delivered stronger long-term gains because they typically include more land, which increases in value over time. In contrast, apartments often don’t benefit as directly from land value, as the land is usually shared among all units in the complex or, in some cases like leasehold properties, owned by someone else.” 

Despite the slower growth in returns, Williams notes that the apartment market could be an attractive option for first-home buyers. Notably, the average asking price for an Auckland apartment in November 2024 was $750,596— 29.3% less than the average for a house in the region which had an average asking price of $1,062,295. 

“The cost to get into the property market is often lower for apartments,” says Williams. “With an average asking price of an apartment in Auckland sitting at around $300,000 less than a house, the difference in deposit required could be a game-changer for first-time buyers. 

“It’s not just about the numbers—lifestyle plays a huge role in choosing between a house and an apartment. Some buyers prioritise the convenience of city living with minimal maintenance, while others value the space and flexibility of a house. 

Understanding these trade-offs will help you make the best decision for your future.” 

Listen to the latest episode of Making Cents for more insights on the differences between houses and apartments, including key considerations for buyers. 

The Making Cents podcast is everywhere you find podcasts, including Apple and Spotify. 

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