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'Mum and dad' investors are back in the property market
A key buyer group has been making a noticeable comeback.
A key buyer group has been making a noticeable comeback to the New Zealand property market over the past 12-18 months: mortgaged multiple property owners (MPOs), often known as 'Mum and Dad' investors.
To get the full picture, we asked Kelvin Davidson, Chief Property Economist at Cotality, to break down the trend.
The data shows a clear return
"Over the past 12-18 months the Cotality Buyer Classification data has shown a comeback from mortgaged multiple property owners," Kelvin explains. "Their share of purchases has risen from a lull of around 21% to almost 25% now – a much more normal share for that group."
This isn't an isolated trend. Kelvin notes it's a broad-based return seen across the country, with these investors now accounting for 29% of activity in Hamilton, 27% in Christchurch, and 26% in Auckland, with similar patterns in many provincial towns.
Who are they and what are they buying?
This comeback is being driven by smaller-scale investors. As Kelvin points out, the activity is from "those who own two properties in total after their latest purchase, or 3-4. In other words, it appears to be new investors or those expanding a small, existing portfolio – the ‘Mums and Dads’."
These investors are also savvy shoppers. They're finding good value in the current soft market, "paying a median price so far in 2025 of $760,000 – down from $770,000 in 2024," says Kelvin. New-builds remain a popular choice, as they are exempt from LVR and DTI lending rules.
What’s driving the comeback?
Two key factors are encouraging these investors back into the market.
- Mortgage Interest Deductibility: The full reinstatement of this policy, effective April 1st, has certainly played a part.
- Lower Interest Rates: Kelvin believes this is the most significant driver. He says lower rates are "reducing the cashflow top-up out of other income that is generally required by smaller investors when they buy a rental property."
So, is this trend here to stay? Kelvin thinks so. "With mortgage rates looking set to be lower for a while yet, especially with the latest 0.5% OCR cut, investors may well remain a solid presence into 2026.
Author
Chief Property Economist, Cotality - cotality.com
Kelvin joined Cotality (previously CoreLogic) in March 2018. He brings with him a wealth of experience, having spent 15 years working largely in private sector economic consultancies in both New Zealand and the UK.
In his role with Cotality, Kelvin’s focus is on keeping up to date with what’s going on in the property market and continually finding different ways for viewing and interpreting it. Kelvin’s economics background means that he knows his way around a spreadsheet, but more importantly he always puts more emphasis on providing the key insights and telling a story.
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