Auckland's housing market presents a diverse array of living options, ranging from state-owned housing in lower-income neighborhoods to opulent waterfront estates, particularly in areas adjacent to the Waitematā Harbour. Traditionally, standalone houses on a quarter-acre lot (1,000 m²) were the most common type of residence for Aucklanders. However, over the years, infill housing and subdivisions have become increasingly prevalent, contributing to a more varied housing stock. Since the 1970s, and especially after the 1990s, the construction of apartments has surged in the Central Business District (CBD), though the majority of Auckland residents still prefer single-dwelling homes. This trend is expected to continue, even as urban growth shifts toward intensification.

Despite this diversity, Auckland's housing is now regarded as one of the least affordable in the world. Comparisons of average house prices with average household incomes reveal a significant affordability gap, exacerbated by skyrocketing house prices that have outpaced inflation for decades. In August 2022, the Real Estate Institute of New Zealand (REINZ) reported that the median house price in the Auckland region reached a staggering NZ$1,100,000, with prices varying significantly across localities—from NZ$900,000 in the former Papakura District to NZ$1,285,000 in North Shore City. In contrast, the median price outside of Auckland was NZ$700,000. This disparity has sparked substantial public debate regarding the reasons behind Auckland’s soaring housing costs, often citing limited land supply, easy access to credit for residential investments, and the city’s high livability rating as contributing factors.

As the demand for housing continues to escalate, some areas have witnessed the demolition of Victorian villas in favor of redevelopment projects. In response to this trend, efforts to enhance heritage protection for older neighborhoods are gaining traction, as Auckland is noted for having one of the most extensive collections of timbered housing with classical details and mouldings, primarily from the Victorian and Edwardian eras.

The housing crisis in Auckland began to manifest significantly around 2010, as the market struggled to keep pace with the demand for affordable homes. The Housing Accords and Special Housing Areas Act 2013 mandated that at least 10 percent of new developments in designated areas be subsidized to make them accessible for average-income buyers. A notable example includes the Hobsonville Point subdivision, where 20 percent of new homes were offered at prices below NZ$550,000. This influx of demand was partly fueled by the arrival of approximately 43,000 new residents in Auckland between June 2014 and June 2015. Research suggests that Auckland's population density is set to increase further in the coming years, potentially alleviating some housing pressures by promoting higher-density living in the city center.

However, from November 2021 to May 2022, house prices experienced a significant decline of 11.68%, continuing to fall due to various factors, including inflation, rising bank interest rates, and broader economic conditions. As Auckland navigates its housing challenges, the focus remains on finding sustainable solutions to ensure that residents can afford homes that meet their needs in this vibrant city.