Is it cheaper to buy or rent?

Bank of New Zealand (BNZ) estimates indicate that the annual cash ownership costs for purchasing a new house have dropped to approximately 35% of median household incomes, down from a peak of 50% recorded in 2023.

The decline in ownership costs relative to median incomes offers new insight into the ongoing financial comparison between buying and renting residential property in New Zealand. This metric highlights a significant shift in housing affordability conditions compared to the previous year's peak.

The data provides a benchmark for evaluating whether homeownership or renting is more economically viable for households, reflecting broader economic adjustments within the New Zealand housing market.