What’s a good price for your first home?

The biggest barrier to buying a house in New Zealand for most first home buyers is the price. But don’t let medians and averages fool you: your first home could be a lot less expensive than you think, if you search with the right strategy. Here’s our breakdown.

In this article:

  • How much your first home will cost.
  • What a first home looks like.


Most first home buyers choose to buy a home on the less expensive side, in what’s called the ‘lower quartile’ or ‘first quartile’. This is a home that is in the cheapest 25% of the houses in your chosen area.

These homes cost less and are easier for first home buyers to get approved for, but are also usually smaller, in less desirable suburbs, or don’t have as much land attached to them.

Depending on where you buy in NZ, the lower quartile price can vary a lot. Buying a first home in Auckland will be a lot more expensive than buying a first home in Southland. See the table below for more details.

Visit interest.co.nz’s Home Loan Affordability Report for more information on first home affordability region by region and suburb by suburb.

While there’s no upper or lower limit on how much you can spend on a first home, these figures should give you a general estimate of how much you’ll expect to pay for the standard.


Use TradeMe, realestate.co.nz or your preferred local real estate agent’s sites to search for properties at the prices listed above. This will give you an overview of what to expect from a first home in your area.

Our advice is to look at properties that are both a little higher and a little lower than the first quartile price listed above for your area. You may find that you don’t have to pay as much as you think for what you want, or that you may need to pay a premium to get that third bedroom or an office.


At this point, you’ll have a good idea of how much you’ll need to pay, and therefore how much deposit you’ll need to save up! For more first home tips and tricks, stay tuned for our next few articles that will guide you through your purchase from start to finish.

This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact Avanti Finance or your financial adviser. Neither Avanti Finance nor any person involved in this article accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any information, representation or omission, whether negligent or otherwise, contained in this publication. References to third-party websites are provided for your convenience only. Avanti Finance accepts no responsibility for the availability or content of such websites.

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