Buying guide
Is it cheaper to rent or buy a house?
Let’s do the maths
AI summary
In New Zealand, owning a home is generally more expensive than renting. The monthly cost difference can be nearly $2,000 in regions like Auckland, but is smaller in affordable areas like Southland. These figures exclude extra ownership costs like maintenance, making the real gap wider.
Buying can be cheaper under certain conditions:
- A large deposit
- Purchasing a very affordable property
- Lower interest rates
- Rent-to-buy schemes
Despite the cost, Kiwis often buy for long-term security and freedom.
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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