Some first-home buyers are entering the property market because it's almost as affordable to own as it is to rent in some parts of the country, QV says.
QV general manager David Nagel said first-home buyer activity was increasing in Wellington and Dunedin.
People were taking advantage of the ability to use their KiwiSaver funds as a deposit.
"The higher proportion of first-home buyer activity is largely due to rising rents, which mean it can often be as affordable to purchase an entry-level home and pay a mortgage, as it is to rent a home.
"However, for many, raising a deposit is still a bridge too far to cross to be able to gain entry into the housing market."