Buying guide
Is it cheaper to rent or buy a house?
Let’s do the maths
AI summary
Analysis using Trade Me's Property Price Index and Rental Price Index reveals owning a home is generally more expensive than renting in New Zealand. The monthly cost gap can be almost $2,000 in regions like Auckland, but narrows significantly in affordable areas like Southland.
However, buying may become the cheaper option if you:
- Have a larger deposit
- Purchase a very affordable property
- Benefit from lower interest rates
- Use a rent-to-buy scheme
Despite higher initial costs, Kiwis often choose to 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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