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My partner and I rent, have steady jobs and are trying to save a deposit for our first home. We worry that the target keeps moving. I am considering my vote in the 2026 New Zealand general election. What do parties propose about investors, land use and building more homes, and how might those choices affect first-home prices?
New Zealand's 2026 election: housing, property investors and first-home affordability
Your concern is a very real one: you and your partner are doing what people are generally told to do — working steadily, renting responsibly and saving — but the amount you need for a deposit can keep increasing while you're trying to catch up.
There is an important distinction in the 2026 election debate:
- Helping buyers get into the market: making deposits smaller or mortgages easier to obtain.
- Making homes genuinely more affordable: changing land prices, construction costs, housing supply and the financial incentives for property investment.
These are not the same thing. A policy can help you buy sooner without actually making houses cheaper.
Below is a comparison of the main parties' published housing and property policies as of 1 November 2026. The general election is on Saturday 7 November 2026. Policies for Party vote - NZ Election 2026Tax Tips: 2026 General Election
1. What the parties are proposing
National
Focus: buyer access and housing growth
National's approach is to encourage more building while helping more people qualify for home loans.
- Extend the First Home Loan income eligibility limit to $300,000, allowing more first-home buyers to purchase with a 5% deposit.
- Continue its approach of allowing landlords to deduct mortgage interest against rental income.
- Retain its shorter two-year bright-line test.
- Continue planning reforms intended to free up land for development, enable urban intensification and improve infrastructure funding.
- Work with councils to coordinate housing growth and infrastructure.
National's approach favours maintaining the attractiveness of residential property investment while making home ownership more accessible through finance. National is backing first home buyersNZ election 2026: What every party plans for housing, rankedGoing for Housing Growth programme - Ministry for Cities, Environment, Regions and Transport (Formerly Te Tūāpapa Kura Kāinga
Potential effect on first-home buyers: A 5% deposit could make buying possible earlier. However, easier access to borrowing doesn't necessarily reduce the purchase price. If housing supply doesn't keep up with increased purchasing power, additional demand can put upward pressure on prices.
Labour
Focus: taxing property gains and expanding housing assistance
Labour proposes:
- A 28% capital gains tax on gains from residential investment and commercial property, excluding the family home. It would apply to gains accruing after 1 July 2027.
- Retaining the restoration of interest deductibility for landlords rather than reversing the current settings.
- At least 6,000 additional social housing places over four years.
- Restarting Kāinga Ora's building programme.
- Expanding access to 5% First Home Loans, with a $300,000 income cap.
- A rent-to-buy scheme for eligible Kāinga Ora and community housing tenants, crediting $100 per week towards a future deposit.
The rent-to-buy proposal is particularly relevant to renters, although eligibility is limited to participating public and community housing arrangements, rather than all private renters. Making it Easier to Buy Your First HomeThe property policies: How election 2026 housing promises line upTax Tips: 2026 General Election
Potential effect on first-home buyers: The capital gains tax could reduce some investors' incentive to purchase property purely for capital appreciation. That might reduce competition for existing homes.
However, some investors could instead raise rents, sell rental properties or reduce investment in rental housing. The consequences depend on how investors respond and whether enough new housing is constructed.
Green Party
Focus: reducing speculation and strengthening public housing
The Greens propose more substantial changes to the treatment of residential property investment.
Their housing policies include:
- Repealing interest deductibility for residential investment properties.
- Restoring the 10-year bright-line period.
- Introducing rent increases limited to the lower of inflation or average wage growth.
- Ending no-cause evictions.
- Establishing an independently enforced Rental Warrant of Fitness.
- Building tens of thousands of additional public homes.
- Investigating limits on how many properties an individual, company or family estate can own, alongside a value-uplift levy.
The Greens also propose broader tax reforms, including a wealth tax, although the family home is excluded from that wealth tax. The property policies: How election 2026 housing promises line upTax Tips: 2026 General Election
Potential effect on first-home buyers: Making leveraged property investment less tax-attractive could reduce investor demand for existing homes, potentially easing competition for first-home buyers.
But there are trade-offs. If some landlords sell, rental supply could shrink. Rent controls may protect existing tenants from large increases, but could also affect incentives to provide or maintain rental properties.
The proposed expansion of public housing would increase housing supply, although public housing does not directly create more homes for sale to first-home buyers.
ACT
Focus: reducing barriers to private development
ACT's approach emphasises private investment, deregulation and lower taxes.
Its proposals include:
- Opposing capital gains and wealth taxes.
- Abolishing rental loss ring-fencing, allowing rental property losses to be offset against other income.
- Reducing personal and trustee tax rates to 28%.
- Making it easier to build through changes to planning and building consent processes.
- Giving councils a financial incentive to approve housing development, including proposals involving a share of GST generated by new homes.
NZ election 2026: What every party plans for housing, rankedTax Tips: 2026 General ElectionRent, supply, red tape: The housing gaps political parties haven’t filled
Potential effect on first-home buyers: Easier construction and more developable land could increase supply and ease price pressure over time.
However, more favourable tax treatment for property investors could also increase competition from investors purchasing existing houses.
The important question is whether the additional investment produces new homes or simply increases demand for existing ones.
New Zealand First
Focus: infrastructure before development
NZ First has a more limited set of housing-specific proposals.
Its October 2026 announcement proposes:
- Requiring developers seeking fast-track housing approval to demonstrate that necessary infrastructure is available, funded and deliverable.
- Requiring consideration of roads, water, wastewater and other essential services.
- Allowing expert panels to reject developments that lack adequate infrastructure.
- Giving the Housing Minister responsibility for housing project referral decisions.
- Developing a 30-year population plan coordinating immigration, infrastructure and housing.
NZFirst Policy Announcement: Changes to Fast-Track Residential ApprovalsOur Policy
Potential effect on first-home buyers: Better infrastructure planning could support sustainable housing growth and avoid developments being held back by inadequate services.
However, additional approval requirements could also delay construction if infrastructure funding and delivery are not resolved quickly.
The Opportunity Party (TOP)
Focus: changing the economics of land ownership
TOP has one of the more distinctive housing proposals.
It proposes:
- An annual land value tax of 1.75% on urban land and 0.5% on rural land.
- Ten nationally consistent planning zones.
- Easier construction of different types of homes.
- National pre-approval for established prefabricated and modular building methods.
- GST refunds to councils for qualifying new housing.
- Low-cost government finance for affordable and social housing developers.
- Deferring land tax for up to two years while land is being developed.
The land tax applies to land value rather than the value of the buildings on it, with proposed exemptions and deferrals for certain groups. Tax Tips: 2026 General ElectionThe property policies: How election 2026 housing promises line up
Potential effect on first-home buyers: A recurring tax on land could make holding valuable but underused land more expensive.
This could encourage landowners to develop or sell land, potentially increasing housing supply and reducing speculative land prices.
It could also put financial pressure on some existing homeowners, depending on exemptions, deferrals and the ability to pass costs on.
TOP's own modelling suggests a possible 10–15% reduction in house prices over time. That is a party modelling claim, not a guaranteed or independently established forecast. NZ election 2026: What every party plans for housing, rankedTax Tips: 2026 General Election
Te Pāti Māori
Focus: Māori-led housing and reducing speculation
Its proposals include:
- Building 2,000 homes on ancestral Māori land within four years.
- Introducing a 33% land-banking tax.
- Introducing a 2% annual vacant-house tax on homes vacant for more than three months.
- Removing interest deductibility for landlords.
- Introducing a 5% stamp duty on residential sales, with an exemption for first-home buyers purchasing homes under $1 million.
- Ending sales of freehold land to offshore foreign interests.
- Introducing universal rent controls.
- Allocating 50% of new social housing to Māori.
The property policies: How election 2026 housing promises line upPolicyElection Tax Policies, part three
Potential effect on first-home buyers: Taxes on vacant homes and land banking could encourage unused property and land to enter productive use.
The stamp duty exemption could directly benefit qualifying first-home buyers, although other buyers and sellers would face additional transaction costs.
The proposed expansion of Māori-led housing could also increase supply, particularly through development on ancestral land.
2. How could these policies actually change house prices?
This is arguably the most important part of the comparison.
There are four major mechanisms worth understanding.
A. Increasing the supply of homes
More land, infrastructure, apartments, townhouses and standalone houses can give buyers more choice. If supply grows faster than demand, this can reduce upward pressure on prices.
B. Changing investor incentives
Tax deductions, capital gains taxes and land taxes influence whether investors buy existing houses, build new ones, hold vacant land or sell properties.
C. Increasing buyers' borrowing power
Lower deposit requirements and easier mortgage access can help people purchase sooner. But if the number of homes available doesn't increase, more borrowing capacity can translate into higher prices.
D. Making development cheaper and faster
Planning reform, infrastructure financing, standardised building approvals and construction capacity can reduce the cost and time involved in delivering new homes.
The Government's own Going for Housing Growth programme identifies land availability, infrastructure financing and incentives for councils as three central requirements for increasing housing supply. Going for Housing Growth programme - Ministry for Cities, Environment, Regions and Transport (Formerly Te Tūāpapa Kura KāingaNew development levies system to support housing growth - News - Ministry for Cities, Environment, Regions and Transport
Comparing the likely direction of effects
This is an economic interpretation of the proposals, not a prediction of actual election outcomes.
| Policy approach | Potential effect on purchase prices |
|---|---|
| More land and building | Downward pressure over time |
| Easier development approvals | Downward pressure over time |
| Higher investor property taxes | Could reduce investor demand |
| Lower investor taxes | Could increase investor demand |
| Vacant land and land banking taxes | Could encourage development or sales |
| 5% deposits | Helps buyers enter, but could increase demand |
| Capital gains tax | Could reduce speculative demand |
| More public housing | Adds supply, particularly for people needing affordable housing |
One important qualification: reducing investor demand does not automatically make housing affordable. If rental properties are sold to owner-occupiers, that can help buyers, but if fewer rental homes are built, renters can face greater competition.
Similarly, building more houses doesn't automatically mean they will be affordable. The type, location, size and price of new homes matter.
3. What matters most when you're saving a deposit?
Let's put some numbers around your situation.
Suppose you and your partner are saving towards a $700,000 first home.
Illustrative deposit comparison
$140,000
Traditional 20% deposit on a $700,000 property
$35,000
5% deposit under an eligible First Home Loan
Difference: $105,000 less upfront deposit savings required.
Both National and Labour propose widening access to 5% First Home Loans through a $300,000 income cap. National is backing first home buyersMaking it Easier to Buy Your First Home
That is potentially significant for working couples who have enough income to service a mortgage but struggle to save a large deposit while paying rent.
But there are two separate hurdles:
- Getting the deposit: How long will it take you to accumulate enough savings?
- Affording the mortgage: Can you comfortably afford the repayments, interest rate changes, insurance, rates and maintenance?
A 5% deposit addresses the first hurdle, not necessarily the second.
Also, a lower deposit generally means a larger mortgage, potentially higher interest costs and tighter lending requirements.
4. The question of whether house prices will keep moving away from you
I would pay particular attention to three things when evaluating party promises.
First: Does the policy increase the actual number of homes?
Look for measurable construction targets, available land, infrastructure funding and the ability to deliver developments. Announcing that more land will be zoned is not the same as having serviced sections ready for construction.
Second: Does the policy make existing houses more attractive to investors than first-home buyers?
Consider the treatment of mortgage interest, capital gains, land banking and vacant properties. These policies influence the financial competition between investors and owner-occupiers.
Third: Does the policy improve affordability or simply increase access to debt?
This distinction is particularly important for first-home buyers.
If a couple can borrow more but the price of the house increases by a similar amount, they may not be much better off.
5. A neutral comparison of the choices facing voters
Here is another way to look at the election without treating any one party as the automatic answer.
| Your priority | Policies worth examining |
|---|---|
| Reducing investor competition | Labour, Greens, Te Pāti Māori |
| Encouraging private development | National, ACT, TOP |
| Increasing public housing | Labour, Greens, Te Pāti Māori |
| Making underused land available | TOP, Te Pāti Māori |
| Lowering deposit barriers | National, Labour |
| More predictable rental costs | Greens, Te Pāti Māori |
| Infrastructure-backed growth | National, NZ First |
| Changing the tax treatment of land | TOP, Te Pāti Māori |
These are differences in policy emphasis, not a ranking of parties. The actual outcome would depend on legislation, implementation, economic conditions and coalition agreements.
For an independent comparison of the published policies, see:
- Policy.nz – 2026 housing policy comparison.
- PwC – 2026 election tax policy analysis.
- Government – Going for Housing Growth programme.
6. My suggested way of thinking about your decision
I wouldn't judge housing policies solely by whether they promise to help first-home buyers.
I'd look at whether they address the underlying reasons that a home is expensive in the first place.
For a working couple renting and saving, these are useful questions to ask about every party:
- Will this policy make it easier to build enough houses?
- Will it reduce the price of land and the cost of development?
- Will it change incentives for investors buying existing homes?
- Will it make buying more accessible without simply pushing prices higher?
- Will it keep the rental market viable while we are still saving?
- How quickly could the promised changes realistically take effect?
One final consideration: house prices are also affected by mortgage interest rates, employment, population growth, wages, construction costs and the wider economy. No party can guarantee that prices will fall.
My central observation: A policy that helps you save a smaller deposit is valuable, but a policy that helps prevent the price of your eventual home from continually outpacing your savings is a different and equally important consideration.
You deserve to be able to plan for home ownership without having to guess whether the goalposts will move again.
7. One useful next step: put your own numbers against the policies
If you'd like, I can build a practical first-home affordability comparison for you and your partner using New Zealand figures.
It could show:
- How long it would take to save a 10%, 15% or 20% deposit.
- What happens if house prices rise by 2%, 4% or 6% annually while you're saving.
- How a 5% First Home Loan changes your buying timeline.
- How much the mortgage repayments would be at different interest rates.
- Which housing policy mechanisms could make the biggest difference to the price of the type of home you're trying to buy.
That would help separate the political promises from the practical question that matters most: Will you and your partner be closer to owning a home in three to five years, or will the target have moved further away?
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