Equifax data shows cautious consumers and a two-speed housing market
New Zealand’s property market continues to split along regional lines, while households are cutting back on non-essential spending, according to Equifax New Zealand’s October Market Pulse.
Two-speed property market
Equifax found the national housing market eased 0.2% to $950,000 in October, but several South Island regions continued to post solid annual gains.
Southland recorded the strongest growth at 6.7%, followed by Otago at 5.8%, the West Coast at 3.9% and Canterbury at 2.4%.
“We also continue to see a distinct two-speed property market across New Zealand,” said Equifax head of solutions Nick Foster (pictured).
He added: “This regional resilience shows that local market conditions remain a key driver of property performance, even as the national outlook stays subdued.”
Spending pulls back
Retail spending fell 0.7% in September, with discretionary categories hit harder. Hospitality spending dropped 2.3% and apparel fell 2.0%.
Foster said affordability pressures continue to shape how households spend.
“Kiwis remain cautious with their spending, prioritising essential expenses and pulling back where they can,” he said.
Households lean on credit
Credit card hardship rose 33.3% year on year, the sharpest annual deterioration across the major lending products Equifax tracks.
Foster said that while most mortgage holders are managing, “a growing number of households are beginning to rely on revolving credit to absorb everyday expenses.”
Home loan borrowers remain in a stronger position, with enquiries up 12.2% so far this year and arrears continuing to ease.
Centrix’s October Credit Indicator paints a similar picture, with mortgage arrears at 1.19% in September, the lowest since December 2022. Strong demand hasn’t translated into more approvals, however. Centrix found approved new mortgages were 16% lower in the September quarter than a year earlier.
The Reserve Bank held the official cash rate at 2.75% on 28 October in a split vote, with economists still tipping a December hike.
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