When it comes to property value, adding another bedroom could be one of the smartest investments New Zealand homeowners can make. According to Vanessa Williams, spokesperson for realestate.co.nz, “Property owners who are willing to roll up their sleeves and add another bedroom through a smart renovation will likely benefit when selling.”

The numbers are compelling. Nationally, there’s nearly a $400,000 increase in value between a three-bedroom and four-bedroom home, and almost half a million dollars between a four-bedroom and a five-bedroom home. Beyond boosting sale price, an extra bedroom also makes a property more liveable and appealing to a wider pool of buyers.

Auckland: The steepest increase from one to two bedrooms

Auckland saw the sharpest increase for smaller homes, with buyers paying 50 percent more on average to move from a one-bedroom to a two-bedroom property. Between July 2024 and July 2025, the average asking price jumped from $513,668 for a one-bedroom to $772,483 for two bedrooms.

While the increases were more gradual for larger homes, this highlights just how valuable even a small upsizing can be in New Zealand’s largest city.

Wellington: strong gains for smaller properties

In the capital, Wellington buyers saw a 45 percent price increase between one and two-bedroom properties, rising from $435,116 to $629,991. For three, four, and five-bedroom homes, the increases were steadier at around 30 percent. This suggests that for Wellington homeowners, adding that second bedroom could be a particularly smart move.

Waikato and Canterbury: Four bedrooms add the most value

In Waikato and Canterbury, the biggest payoff comes when upsizing from three to four bedrooms. In Waikato adding a fourth bedroom meant a $288,519, a 39 percent increase in value in the last year. In Canterbury the price jump was $255,437 or 36 percent between three and four-bedroom homes. For families looking for space, four-bedroom homes in these regions are proving especially desirable.

In Central Otago an extra bedroom comes with a price tag of half a million dollars. The Central Otago and Lakes District recorded some of the most dramatic jumps in the country between mid-2024 to mid-2025. Between two and three-bedroom homes, the average asking price soared by 64 percent, increasing from $858,387 to $1,412,870; a difference of $554,483.

Four-bedroom homes saw a further 53 percent increase, a difference of $754,970. Upsizing from four bedrooms to five-plus delivered nearly a $1 million jump, reaching over $3 million on average.

What This Means for Buyers and Sellers

For sellers, these figures underline the value of renovating with bedrooms in mind. Adding a well-designed extra bedroom can transform a property’s appeal and deliver one of the biggest financial returns at sale time.

For buyers, it’s important to recognise the premium on extra bedrooms when upsizing. As Vanessa Williams notes, “These homes are often seen as the ‘forever home,’ so buyers are willing to stretch further to secure them.”

From Auckland to Central Otago, the data shows that adding bedrooms adds extra value. For homeowners considering renovating, adding another bedroom is more likely to offer a sound return on investment.