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Cost pressures for the transport industry remained mixed in the December 2025 quarter, with decreasing costs for some inputs but continued pressure across other categories.

Nationwide average house prices are still sitting about 15% below their 2021 peak, falling during 2022 and 2023 as mortgage rates rose, and then largely tracking sideways over the last 2½ years.

The housing market had a soft-ish finish to 2025, with stock levels still elevated, monthly sales roughly in line with the average of the last year, and prices down 0.4% since the end of 2024.

New Zealand enters 2026 with its long-anticipated economic recovery still looking unconvincing, according to Infometrics’ latest forecasts. Despite lower interest rates, more focus on government investment, and historically high export incomes, indicators show momentum remains fragile.

After two years of sluggish activity, households under pressure, and repeatedly deferred expectations of recovery, 2026 is shaping up as a pivotal year for the New Zealand economy.

Surging net migration in late 2023 and falling mortgage rates in late 2024 led several forecasters to predict a strong recovery in house prices during each of the following years.

Chief Forecaster Gareth Kiernan has penned Infometrics’ traditional Christmas Carol. Sung to the tune of Frank Sinatra's Christmas song “Let it Snow”.

After a tough couple of years, there are early signs that the downturn in construction employment might be moderating.

Falling interest rates and limited growth in labour costs continued to keep overall transport costs in check in the September quarter.

The housing market has attracted plenty of attention in recent months. Housing Minister Chris Bishop’s desire for falling house prices was at odds with the Prime Minister’s hope for “modest, consistent” increases in house prices, with the latter seemingly buying into the view that the economy will struggle to grow if the housing market is stagnant.