For instance, in the 12 months to February 2026, Porirua City had the highest percentage of townhouses being built. 69% of new dwelling consents were townhouses according to Stats NZ.

Compare that to Kawerau District, a small district in the Bay of Plenty, where there were no townhouses consented at all over the same period.

How much do townhouses cost?

Based on Opes Property’s current listings as of June 2026, a townhouse can cost from $450,000 to $1.2 million. However, the exact cost depends on the city, size, and the quality of the build.

Here are some examples of the kind of townhouse we might recommend.

2-bedroom townhouse: Beach Haven, Auckland

Here’s a smaller project in Beach Haven, Auckland. Of these 7 townhouses, 5 were 2-bedrooms and priced at $724,000 - $739,000.

According to Opes Property Management, these properties all found tenants within 22 days. That is faster than the average investors would normally expect for a townhouse.

2-bedroom townhouse: Linwood, Christchurch

Here’s an example of a 2-bedroom property in Christchurch.

These properties were priced from $519,000. This is one of the more affordable New Builds I’ve seen for a while.

3-bedroom townhouse: Glen Innes, Auckland

This development included 18 three-bedroom homes with garages, priced at $849,000.

It’s a good example of the kind of townhouse that can appeal to tenants. They are on the larger side, while still being more affordable than a house in the same part of the city.

Are there too many townhouses being built? 

It's true that more townhouses are being built than ever before. In the year ended January 2026, townhouses, flats, and units made up 43.8% of all new homes consented in New Zealand, according to Stats NZ.

This surge, especially in Auckland and Christchurch, makes investors nervous about oversupply.

Why is that? Because, when there’s too much supply of any property type (compared with demand):

• House prices may not rise as fast
• It’s harder to find a tenant (they have so many rental options)

But is there an oversupply of townhouses?

While townhouses are being built at three times the rate they were a decade ago, the usual signs of oversupply aren’t showing up clearly in the data:

#1 – Prices haven’t fallen much faster than houses.

In Auckland, townhouse prices are down 17% from the 2021 peak, compared to 22% for houses. In Christchurch, townhouses are down 1% versus 2% for houses. That’s according to REINZ median sale price data as of April 2026.

#2 – They’re not taking dramatically longer to sell

In Christchurch, townhouses currently take just 3.4 days longer to sell than houses. That's only slightly above the long-term average gap of 2.6 days. That’s according to REINZ market insights data as of February 2026.

#3 – Demand for smaller homes is still strong

In May 2026, there were 808,000 searches for 2-bedroom rental properties on Trade Me. That's compared to 280,000 searches for 4-bedroom homes.

So while supply has clearly increased, the data suggests demand is still keeping pace.

Standalone properties vs townhouses: What grows in value faster?

Since standalone properties have more land, many investors assume they’ll grow in value faster than a townhouse.

In other words, more land = more capital growth.

But historically, townhouses and standalone houses in New Zealand have increased in value at a very similar rate.

When you look at the graph, the first thing you notice is how similar the two lines are. 

Yes, there is a slight difference in favour of existing properties, but there’s very little in it. 

On average, Auckland houses beat townhouses by about 0.7% per year in this example. That’s based on REINZ data from January 1992 – February 2026.

What rental yields do townhouses get?

That said, townhouses often make up for that with stronger rental yields. 

That's for two reasons:
1. They are usually cheaper to buy than standalone houses. 
2. They can still earn solid rents, the yield is often a bit higher.

That combination is part of what makes townhouses appealing to buy-and-hold investors. 

Townhouses offer a reasonable mix of growth and income ... without the higher purchase price of a standalone home.

Who are townhouses the right (and wrong) fit for?

A townhouse can be a good investment, but it won’t suit every investor. 

The key point is that a townhouse is not automatically a good or bad investment. It depends on what you want the property to do. 

What does an expert think: Andrew’s view

The biggest misconception I hear from investors is that townhouses don't grow in value as much as standalone houses.

That's not what has happened in the past.

A townhouse in the right location can achieve similar capital growth to a house. But you don't need to pay a premium for a large section that doesn't generate any extra rent. That means you can often get a good balance between growth and cashflow.

There's another reason I invest in townhouses. You can usually buy two townhouses instead of one pricier house. That gives you options later. If you need to free up cash, you can sell one property and keep the other. You can't sell half a house.

I've always liked having more, but cheaper, individual assets rather than having all my capital tied up in a single property.

From a tenant's perspective, modern townhouses are also attractive. They're typically built in convenient locations close to transport, shops and employment hubs. And they require far less maintenance than older properties.

I've seen investors spend a lot of money maintaining ageing homes (me included). New Build townhouses tend to be simpler to own, easier to rent and, in many cases, easier to hold for the long term.

Should I invest in a townhouse?

A lot of investors ask me whether townhouses are genuinely good investments ... or whether they’re just everywhere because that’s what’s getting built. 

My honest answer is that some townhouses can be good investments and some aren’t. 

The fact that it’s a townhouse doesn’t tell you enough on its own. What matters more is whether the property works as an investment: 

• Is it in a location where tenants want to live?
• Does the rent stack up relative to the purchase price?
• Is it likely to deliver solid long-term growth without stretching your cash flow too far? 

When I look at townhouses today ... these are the questions I focus on. 

These answers will separate a solid investment from a mediocre one.