Why houses tend to outperform apartments

Long-term price data from realestate.co.nz confirms that the average house tends to experience stronger capital growth than the average unit.

Over the 17 years to November 2024, national median prices rose 102.6% for houses and 82.8% for apartments.

Spokesperson Vanessa Williams said the reason for the price growth differential is because, relatively speaking, a house tends to have more land and less building than an apartment.

“Houses have delivered stronger long-term gains because they typically include more land, which increases in value over time,” she said.

“In contrast, apartments often don’t benefit as directly from land value, as the land is usually shared among all units in the complex or, in some cases like leasehold properties, owned by someone else.”

However, Ms Williams said apartments could still be an excellent choice for buyers, depending on their preferences and circumstances.

“The cost to get into the property market is often lower for apartments. With an average asking price of an apartment in Auckland sitting at around $300,000 less than a house, the difference in deposit required could be a game-changer for first-time buyers,” she said.

“It’s not just about the numbers – lifestyle plays a huge role in choosing between a house and an apartment. Some buyers prioritise the convenience of city living with minimal maintenance, while others value the space and flexibility of a house. Understanding these trade-offs will help you make the best decision for your future.” 

Whether you want to buy a house or an apartment, I can help you finance the purchase. I’ll compare loans from a range of lenders, to ensure you get a great deal.