Housing affordability has fallen back to its long-term average, following the big spike in prices seen during the Covid-19 pandemic.

New figures from Cotality show the national value-to-income ratio fell to 6.7 in the second quarter of this year, matching the long-term average between 2004 and 2026.

At its peak in 2021, national house values were about 9.8 times income.

Cotality said several years of lower property prices, easing mortgage rates and rising household incomes had driven the improvement in affordability.

The combination of those factors meant that while housing was not necessarily cheap, affordability was no longer the significant barrier it had been, Cotality NZ chief property economist Kelvin Davidson said.

Mortgage repayments required to service a new loan also fell to 40% of gross household income, below the long-term average of 42% and substantially lower than the 54% peak recorded in late 2021.

The typical time to raise a 20% deposit also eased to 8.9 years, slightly below the long-term average of nine years.

Cotality said median rents now absorbed 25.5% of household income nationally, broadly in line with the long-term average and representing the most favourable conditions for tenants in about a decade.

"It is important to recognise that some tenants will be paying typical rents but not earning an average income," Davidson said. "This will make renting more difficult than these headline numbers suggest."

Affordability gains were uneven across the country.

Cotality said Auckland, Tauranga and Wellington recorded the strongest turnaround after several years of subdued property values, while Christchurch and Dunedin experienced a more modest improvement.

Auckland's income ratio had fallen to 7.2% while Wellington had the lowest of the main centres at 5.5%.

Davidson said markets such as Auckland, Tauranga and Wellington had not necessarily become inexpensive, but after several years of softer property values, they were more affordable than they had been for many years.

Earlier this month, Cotality revealed thousands of homes were selling for less than what the seller paid for them.

Across the country 13.1% of properties sold in the second quarter were at a loss, the highest number since 2012.

In Auckland, the proportion was 20.9% and in Wellington it was 18.4%.

Apartments were much more likely to be sold for a loss, at 45.4%. It was the weakest resale performance for apartments since 2010.