Extra bedroom more achievable as market conditions shift in buyers’ favour

Moving from a three‑bedroom to a four‑bedroom house – whether to accommodate a growing family or create a home office – comes at a cost. Across New Zealand the median price gap remains around $100,000 or more, depending on the region, according to Cotality.

Although the premium is still significant, it’s falling in many areas thanks to a slightly softer market and lower mortgage rates. 

In Auckland City, for example, the extra cost to trade up has dropped roughly 5% (about $32,000) in the past year. Other high‑cost markets like Manukau, North Shore and Rodney have seen similar trends, though the extra space remains well over $300,000. 

In contrast, places like Dunedin and Upper Hutt have trade‑up premiums under $200,000.

Where is it most affordable?

Outside the main centres, several locations have premiums of $300,000 or more – such as Queenstown, Hastings, Mackenzie, Waipa, Whakatāne and Western Bay of Plenty. 

Ruapehu stands out for having the lowest premium, with a gap of just under $100,000. 

Several provincial regions – Central Hawke’s Bay, South Waikato, Whanganui and Whangārei – have seen their premiums drop by 10% or more in the past year.

Why now might be the right time?

A softer market, along with improved listings and lower borrowing costs, is making it easier to consider swapping to a larger home, according to Cotality.

While the extra finance required is still substantial, easing premiums and mortgage rates reduce the hurdle for many upgraders – especially those who need to sell before they buy.

If you’re considering upgrading to a four‑bedroom home, the current market conditions could make it more achievable than you might think. But it’s essential to consider your timing and financing.

Get in touch if you’d like help taking advantage of this opportunity – whether you’re planning an upgrade, navigating trade‑up costs or reviewing your mortgage options.