Buying guide
Is it cheaper to rent or buy a house?
Let’s do the maths
AI summary
Analysis from Trade Me shows owning a home is generally more expensive than renting in New Zealand. The cost gap is largest in regions like Auckland, but smaller in affordable areas like Southland. Gisborne is a notable exception where costs are very similar.
Buying can become cheaper with exceptions such as:
- A larger deposit
- Lower interest rates
- A rent-to-buy scheme
Despite the higher cost, many Kiwis buy for long-term security and the freedom to personalise their property.
Rent vs. mortgage costs in New Zealand’s North Island
All statistics are from Trade Me Property's rental price and property price indexes (12/2024)
Rent vs. mortgage costs in New Zealand’s South Island
All statistics are from Trade Me Property's rental price and property price indexes (12/2024)
Owning a house is generally more expensive than renting
How did we work it all out?
Buying is more expensive but it can be the better long term option.
Exceptions to the rule
The impacts of having a larger home deposit
You’re purchasing a very affordable house
Interest rates are lower than they currently are (12/2024)
You’re participating in a rent to buy scheme
Buying isn't always the best idea - it depends on your lifestyle, goals and financial circumstances.
It’s more expensive, so why buy?
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