Migrant Home Buyers Continue to Shape New Zealand's Housing Market

The housing market in New Zealand is experiencing a growing influence from immigrants, with people on residence visas playing an increasingly prominent role in property purchases.

The housing market in New Zealand is experiencing a growing influence from immigrants, with people on residence visas playing an increasingly prominent role in property purchases. Recent data from Statistics New Zealand reveals that individuals on residence visas, commonly known as migrants, bought a total of 14,538 dwellings in the 12 months leading up to June this year.

While this figure represents a slight decline from the 15,141 dwellings purchased in the previous year and 15,888 in the year before that, the share of the market attributed to migrants has actually increased, owing to a greater decline in total housing sales over the past three years. In the year leading up to June 2018, people on residence visas accounted for 7.9% of dwelling sales. Since then, this percentage has steadily risen to reach 12.4% in the 12 months to June 2023.

Interestingly, migrants are displaying a lower likelihood of selling residential properties. Between 2018 and 2023, individuals on residence visas accounted for only 4.2% to 4.8% of residential vendors. These statistics indicate that migrants are primarily impacting the housing market on the demand side, driving the need for residential properties.

It is worth noting that the figures provided by Statistics New Zealand only capture migrants holding residence visas. The overall impact of migrants on the housing market is likely to be even greater because the data does not account for migrants who have become New Zealand citizens. While the data records sales and purchases made by New Zealand citizens, it does not differentiate between citizens who were born in the country and those who migrated to New Zealand from elsewhere.

As migrants continue to contribute to the housing market, their presence may have implications for home prices, availability, and overall market dynamics. It is important for policymakers and stakeholders to monitor these trends and develop strategies that ensure a balanced and sustainable housing market for both residents and immigrants.