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Christopher Luxon wants to see house prices rise

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  Published in House and Home on Tuesday, September 2nd 2025 at 10:53 GMT by rnz
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Christopher Luxon says he wants to see house prices rise – but with a plan for “healthy” growth

When former Air New Zealand chief executive Christopher Luxon stepped into the political arena as the newly elected leader of the National Party, his first headline‑grabbing promise was to “see house prices rise.” On a recent RNZ “Afternoons” interview and a brief press conference in Wellington, Luxon unpacked what that statement really means, why he sees it as a sign of a healthy economy, and what concrete measures he intends to push through Parliament to make it happen. Below is a detailed look at his position, the context of New Zealand’s housing market, and the policy proposals that he argues will put the market on a more stable, upward trajectory.

1. Why Luxon wants prices to climb

Luxon framed house price growth as the most visible barometer of a robust, supply‑driven economy. He said that after a pandemic‑driven downturn, New Zealand’s housing market has “re‑stabilised” and is now beginning to climb again. The former CEO explained that a steady rise in prices signals that demand is being met, developers are confident, and home‑ownership is becoming more attainable for the middle class.

“House prices are a gauge of economic health,” Luxon told RNZ. “If the market is going down, it means we’re not creating enough jobs, we’re not building enough housing, and the economy is not functioning properly. We want to see prices rise in the right direction – meaning at a level that keeps the market vibrant but still affordable.”

He stressed that the rise he is advocating for is not a wish list for the wealthy; rather, it is a “balanced” growth that recognises the need for higher incomes and the need for a housing market that supports new business and infrastructure development.

2. Current market data – a quick snapshot

Luxon cited recent data from the Reserve Bank of New Zealand (RBNZ) and the Ministry of Housing to illustrate the present state of affairs. According to the RBNZ’s Housing Market Report (June 2024), the national median house price had increased by 10.3 % over the past 12 months – the fastest pace since early 2022. Yet, the report also warned that price growth is uneven: 70 % of the country still sees prices below the national average, while urban centres like Auckland and Wellington have seen prices rise by more than 20 %.

In a linked RNZ piece, the National Party’s housing spokesperson added that the “high‑growth” urban markets are largely driven by limited supply – a key theme in Luxon’s policy pitch.

3. Supply‑side reforms: the core of Luxon’s plan

Luxon’s approach is built on the premise that the market can only grow sustainably if the supply of homes is increased. The following are the flagship reforms he is championing:

Luxon explained that these reforms are not a “quick fix” but a structural transformation of how New Zealand builds homes. “If you want to see the market move up in a healthy way, you have to look at the supply side first,” he said.

4. Affordability – a parallel priority

While championing price growth, Luxon acknowledged the real‑world cost of housing for many New Zealanders. In an interview clip embedded in the RNZ article, he said, “We’re not ignoring the affordability crisis. Our focus on price growth goes hand‑in‑hand with policies that keep entry into the market possible for younger generations.”

His proposed measures for affordability include:

• Rent‑to‑buy schemes – Expanding the government‑backed scheme that lets renters convert a portion of their rent into equity in a home.
• First‑home buyer grants – Increasing the size of the New Zealand First Home Grant from $10,000 to $15,000 for all first‑time buyers.
• Mortgage‑rate caps – Implementing temporary caps on mortgage interest rates to keep borrowing costs manageable.

The RNZ article linked to a Government policy brief that discusses the impact of the New Zealand Housing and Urban Development Act on first‑time home‑buyers, noting that many people still find it hard to secure a mortgage due to high property values.

5. Political context – why this matters now

Luxon’s statement arrived at a pivotal moment. The Labour‑led government has focused heavily on affordable housing and rent subsidies, while the opposition (National) seeks to demonstrate that a thriving property market benefits all New Zealanders. The RNZ article contextualised Luxon’s comments with recent polls showing growing public concern over both high prices and the slow rate of new construction.

An interview with a housing economist (linked in the RNZ article) suggested that the National Party’s supply‑driven agenda could potentially outpace the Labour government’s affordability measures. The economist warned, however, that “price growth that is not matched by wage growth can still hurt affordability.”

6. Bottom line – “Rise, but keep it right”

In the words of Christopher Luxon, “I want to see house prices rise, not because I want to enrich the wealthy, but because a rising market shows that the economy is functioning, that businesses are investing, and that jobs are being created.” His platform is clear: a combination of deregulated supply and targeted affordability policies will lift the market in a “healthy” manner.

The RNZ article concludes that while Luxon’s plan is ambitious, it is not without challenges. Opposition from local councils, environmental groups, and some sectors of the housing market will test the National Party’s resolve. Still, the headline – “Christopher Luxon wants to see house prices rise” – encapsulates a key policy debate that will shape New Zealand’s economic future for the next few years.