The average national house price was hitting between NZ$937,000 and $1m, nearly eight times the annual household income.
Real Estate Institute data shows there was a 31% increase over the year to July.
Wellington and Auckland have some of the least affordable property markets in the world – homeownership rates in New Zealand have been falling since the early 1990s across all age brackets, but the drop is especially pronounced for people in their 20s and 30s.
A spokesperson for Consumer NZ, Gemma Rasmussen, said that with house prices rising so quickly, even high-income millennials will struggle to save for a deposit without the benefit of intergenerational wealth.
“We’re heading for a place where there are two New Zealands: the people who have property, they’re secure and their capital gains will continue to grow, and then there are people who are locked out.”
The World Socialist Party (New Zealand)
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