The New Zealand Treasury has revised its economic forecasts, significantly lowering its projection for housing price growth in 2027. Previously, the agency had expected a 4% increase for that year and a 4.6% rise in 2028. These projections have now been adjusted to 0.6% for 2027 and 2.4% for 2028. The downward revision reflects a broader slowdown in the housing market, which has been influenced by tighter lending conditions and a cooling demand. The change comes amid growing concerns over affordability and market stability. Officials note that the revised forecasts are part of an updated pre-election economic outlook, signaling a more cautious approach to housing market trends. The adjustment highlights the challenges facing the sector as policymakers navigate economic uncertainty.