Bayleys managers share their insights

After several years of disruption, recalibration and restraint, New Zealand’s housing market is beginning to find its footing. While price growth has been uneven and buyer confidence slow, activity on the ground tells a more nuanced story.

A recent survey of Bayleys agents across the country points to a clear theme emerging for 2026: buyers are no longer chasing excess. Instead, they’re prioritising liveability, affordability and long-term suitability, and while the underlying mindset is consistent nationwide, the “sweet spot” and most popular property type look a little different depending on which of our main centres you’re in.

In Auckland, demand is gathering around family homes that balance space, function and value across the city’s diverse sub-markets. In Canterbury, strong internal migration and relative affordability are reinforcing the appeal of family homes that offer land, flexibility, and lifestyle. Meanwhile in Wellington, first-home buyers are leading the recovery, driving demand for affordable, low-maintenance properties that provide an attainable entry point into ownership.

Together, these regional insights paint a picture of a market shaped not by speculation or urgency, but by fundamentals - schooling, community, affordability and how people genuinely want to live heading into 2026.

AUCKLAND: FAMILY HOMES HOLD THEIR GROUND

In New Zealand’s largest and most diverse housing market, there is no single buyer profile, but there is a clear pattern emerging. Across Auckland, family homes are proving to be the city’s most resilient and sought-after property type as the market transitions into its next phase.

In the south of the city, Bayleys Pukekohe Branch Manager Sharleen Buchanan describes buyer sentiment as cautiously positive.

“Activity is steady, but buyers are noticeably more deliberate than during previous peaks.”

“Buyers are active and engaged, but they’re disciplined,” she says. “They’re well-researched, negotiating more and stretching less.”

In Pukekohe, the definition of a family home is practical rather than aspirational. Typically, buyers are seeking three to four bedrooms, two bathrooms, open plan living, double garaging and usable outdoor space, without the need for luxury finishes or excess scale.

“It doesn’t need to be large or high-end. It needs to be functional, comfortable and affordable for long-term living.”

That combination is resonating strongly with buyers priced out of more central suburbs.

Buchanan says Pukekohe offers better value per square metre than urban Auckland, alongside space, schooling and a strong sense of community. Demand is being driven by up-sizers moving locally or from South and East Auckland, first-home buyers purchasing family-sized properties - often with parental support, and lifestyle-driven relocators.

“The strongest activity is sitting between $750,000 and $1.1 million, with steady demand extending to around $1.5 million where condition, product and location stack up.”

“Standalone homes are significantly outperforming townhouses, while turn-key properties or homes requiring minimal work are being favoured over renovation projects unless pricing clearly reflects the effort involved.” Further north and closer to the city, the fundamentals shift, but the focus on family homes remains.

In central Auckland, Bayleys Remuera General Manager Scott Kirk says emotional drivers are front and centre.

“There’s a strong desire for families to own a home that genuinely suits their family needs.”

He says renovated homes with outdoor living and play areas - ideally visible from kitchen and living spaces are in highest demand, with pools holding strong appeal. While affordability still matters, space and lifestyle are the primary priorities in this market.

“Demand is being driven by upsizers and downsizers. Many downsizers delayed selling through 2024 and early 2025, waiting for values to stabilise. That hesitation has eased.”

“We started to see more commitment in the later part of 2025. People are feeling comfortable with values again and recognising they need to move forward with their plans.”

Kirk says the most active segment in central Auckland sits between the $2 million and $4 million price bracket, with family buyers gravitating toward standalone homes on land.

“Grammar-zoned properties, particularly within Double Grammar and Mt Albert Grammar zones continue to experience heightened demand.”

On the North Shore, Bayleys Takapuna Branch Manager Kathryn Robertson describes buyer sentiment as cautiously optimistic. “Buyers are engaged, informed, value-driven and they’re prepared to act quickly when the right property comes along.”

Here, she says family homes are defined by practicality and location rather than sheer size.

“Buyers want at least three bedrooms, good living flow, outdoor space for kids and pets, garaging, and proximity to schools, shops and transport.”

“Families are driven by normal life stages. Upsizing as children grow, downsizing as kids leave home. It’s less about the economy and more about long-term liveability.”

While renovated, low-maintenance homes are preferred, she says some buyers are accepting renovation-ready properties due to affordability constraints.

“The most active price bracket sits from the early to mid-$1 millions through to the low $2 millions. Takapuna remains consistently strong, with neighbouring suburbs such as Castor Bay and Hillcrest experiencing a noticeable surge in interest.”

Across Auckland, the message is consistent: family homes that are well-located, sensibly sized and realistically priced are in most demand for 2026.

CANTERBURY: MIGRATION, AFFORDABILITY AND MOMENTUM

In Canterbury, the family home isn’t just holding its ground, it’s being actively fuelled by migration, affordability and confidence.

According to Bayleys Canterbury GM Rachel Dovey, buyer sentiment across the region is positive, with strong attendance at open homes and consistent enquiry from both local buyers and those relocating from elsewhere in New Zealand.

“What’s particularly interesting is the strength of internal migration. Buyers are transferring into Canterbury for lifestyle, affordability and opportunity.”

That trend is backed by national data.

“Insights from Trade Me showed Canterbury topping the list of relocation destinations nationwide, with 18 percent of respondents naming the region as where they’re looking to move.”

Dovey says the definition of a family home in Canterbury skews toward space - both indoors and out. Buyers are typically seeking homes on 700 square metres or more, with three or more bedrooms, living areas, garaging and strong connection to amenities and school zones.

“Demand is particularly strong for new homes in Selwyn, where modern builds with strong insulation, heating and future-proofed design appeal to families seeking low-maintenance living.”

“In contrast, the city centre’s growing townhouse stock is attracting professional couples and buyers seeking lock-and-leave convenience.”

Dovey says Canterbury’s appeal is underpinned by its education offering and lifestyle infrastructure.

“With a high concentration of school zones, access to tertiary education through the University of Canterbury, and a layout that supports family-oriented living, the region naturally lends itself to long-term settlement.”

The most sought-after family homes tend to feature three to four bedrooms, two living areas, two bathrooms, large garaging and usable outdoor areas. Expansive kitchens - often with pantries, are a strong draw, while spa pools are proving popular additions during the colder months.

Dovey says affordability remains a defining advantage.

“First-home buyers are a significant driver of activity, with median asking prices around $720,000 for two- to three-bedroom homes allowing many young couples to move straight into ownership. Upsizers are also active, driven by growing families, school zoning requirements and the desire for more space.”

But the mid-market, typically between $800,000 and $1.2 million, remains the most active though, spanning bungalows, townhouses and new builds.

“Character suburbs such as St Albans and Merivale continue to perform strongly, while areas like Woolston, Addington, Halswell, Cashmere and Sumner each attract buyers for different lifestyle reasons.”

Looking ahead, Dovey expects demand for family homes to strengthen over the next 12 to 24 months as professional couples move up the ladder and families seek homes that offer longevity.

WELLINGTON: FIRST HOMES LEAD THE RECOVERY

While family homes dominate Auckland and Canterbury, Wellington’s clearest winner for 2026 is emerging at the entry level.

According to Bayleys Wellington Branch Manager Graeme Smith, first-home buyer activity across the capital is at least on par with last year, and likely stronger.

“First-home buyers are a key driver of momentum in our market right now.”

In Wellington, a first home is defined less by typology and more by price.

“Buyers are realistically targeting properties in the $600,000 to $800,000 range - anything that provides an affordable entry point into ownership.”

Smith says that price sensitivity is shaping buyer choices.

“First-home buyers are gravitating toward townhouses, smaller standalone homes and apartments, although apartments tend to attract more caution due to ongoing body corporate costs.”

Affordability is the primary driver, but practicality also plays a role. Smaller homes and higher-density options are easier and cheaper to maintain, an increasingly important consideration for buyers balancing work, lifestyle and rising living costs.

“Buyers soon recalibrate what’s realistic. They adjust expectations around size, location and condition after a few weeks of searching.

“New builds and townhouses are playing a growing role in first-home ownership, offering warmer, better-insulated and more modern living. While finance remains the biggest hurdle, preparation and patience are helping buyers navigate the process.”

As confidence rebuilds, it’s this cohort, not investors or top-end buyers that appear set to underpin Wellington’s next phase of market activity.

LOOKING AHEAD: FUNDAMENTALS OVER FRENZY

As the market moves into 2026, the strongest opportunities are unlikely to be defined by a single property type or price bracket. Instead, they sit at the intersection of local affordability, life stage and long-term liveability.

What unites all three regions is a renewed focus on fundamentals. Whether it’s a family home in Pukekohe, Selwyn or the North Shore, or a first home in Wellington’s more affordable brackets, the properties gaining traction are those that support daily life, space to grow, manageable costs, access to schools and amenities, and homes that feel sustainable for the years ahead.