If you ask any Kiwi ‘what is a better investment in terms of long-term price growth, houses or apartments?’ the answer you would get most of the time is that a house is better - and this majority would be right.

But the big surprise is that the gap between house and price growth is not as wide as many would have expected, at least over the past few years. 

New data from realestate.co.nz reveals that Kiwis move every five and a half years. During the period between May 2019 and November 2024, both houses and apartments saw similar levels of growth. 

Over this period, the average asking price of houses increased by 29.6%, from $650,839 to $843,208. Meanwhile, apartments saw an increase of 27.1% over the same time, from $590,720 to $750,611. 

If you look further back 17-plus years to November 2007, the gap does widen, with houses generally seeing bigger increases. Between November 2007 and November 2024, the national average asking price for houses increased by 102.6%, from $416,173 to $843,208. In comparison, apartments saw an 82.8% increase during the same period, rising from $410,516 to $750,611. 

Angus Raine, Executive Chairman, Raine & Horne said the valuation differences were determined by the relationship of each property asset class to the land they sat on.

Houses generally sit on larger plots of land which increase in value over time. In contrast, apartments often don’t benefit as directly from land value increases, as the land is usually shared among all units in the complex and usually each unit has a smaller equivalent plot.

However, if you look beyond specific numbers and ask whether a house or an apartment is a better option for a buyer, the answer really depends on their investment goals as well as their lifestyle choices, Mr Raine says.

Investing in a house – pro and then cons

• Generally, houses have greater capital growth because of the appreciation of a larger plot of land over time, however this is greatly dependent on location
• Greater control over renovations because they are not subject to body corporate regulations
• Easier to add value by subdividing if council rules allow
• Houses are more likely to attract long-term tenants such as families with pets who provide more consistent rental returns
• Higher entry costs
• Lower rental yields, despite having higher capital growth
• Higher maintenance costs 

Investing in an apartment- pros and then cons

• More affordable for first home buyers and for investors this means they can spread investments across multiple units or buildings
• Inner-city locations mean owners/tenants can often live closer to where they work and where they want to play
• Higher rental yields
• Must pay a body corporate which pays for shared upkeep costs
• Lower potential for capital growth, depending on location
• Lack of control over renovations as any changes must be approved by the body corporate

Whether you want to buy, sell or rent a property, don’t hesitate to contact your local Raine & Horne office.