Antipodean Housing Deep Dive

Kiwi housing is in trouble

Each month we take a graphical deep dive into the Antipodean housing markets.

Housing price growth remains solid overall in Australia, though that masks significant differences between capital cities. Housing construction has fallen a little, in part reflecting capacity and other constraints in the broader construction industry. The pipeline of incomplete dwellings remains large, but is declining.

In contrast, housing prices and turnover in New Zealand are again falling. Housing affordability remains very stretched even though it has improved a little recently. The effects of higher interest rates have also been more acutely felt in New Zealand’s residential construction activity, with leading indicators pointing to further sharp declines in home building.