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. Analysis using Trade Me's Property Price Index and Rental Price Index shows the cost gap is largest in regions like Auckland but smaller in affordable areas like the West Coast.
This calculation excludes extra costs like maintenance, which widens the real gap. However, buying could be cheaper with a large deposit, a very affordable house, or lower interest rates. Many still 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?
Author
Discover More
Nearly 80 years, one family: A beloved coastal home hits the market for first time
After nearly 80 years with one family, this beloved Breaker Bay home is on the market.
Living in a masterpiece: seven Roger Walker homes turning heads on Trade Me Property
Seven playful Roger Walker homes are on the market, from a glass-topped turret to a retro lifestyle block.
Search
Other articles you might like
