Kiwis embracing townhouse living

Back in 2012, just 6% of new dwelling consents were for townhouses; but earlier this year, that figure reached 45%.

So what's behind this dramatic shift to townhouse living? 

“It’s always a little difficult to disentangle supply from demand as the most important driver for the rise of townhouses; did tastes change and developers respond, or have buyers just had to purchase what was available?” Chief Property Economist Kelvin Davidson said.

“In reality, it’s likely to be a bit of both, but certainly buyers can access at a lower price point than other dwelling types. For example, our latest median value for Auckland flats and townhouses is around $775,000, versus the figure for houses of about $1.12 million.”

Of the 39,600 townhouses built across the country since 2016, nearly 25,000, or about 63% have been in Auckland.

Wellington and Christchurch also contain a lot of townhouses.

“Overall, it’s clear that townhouses are now a more prominent feature of New Zealand’s housing market, especially in the largest cities. Given they use land well and can be built close to existing infrastructure such as transport links, they provide a different and cheaper option for a wider range of property buyers,” Mr Davidson said. 

“The obvious aim would be that the Government’s current housing supply rule changes – ‘Going for Housing Growth’ – will prove effective in keeping the townhouse building pipeline strong over the medium term, alongside general growth in all dwelling types.”

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