Is Renting Better Than Buying In New Zealand?

There are myriad reasons people choose to rent rather than buy, especially in the premium property market in New Zealand, writes Leanne Moore.

A new generation of New Zealanders is buying into a future that does not involve a lifetime paying off the quarter-acre dream. Renting, not owning, is increasingly being seen by some as a better way to live, especially in the premium property market.

In recent times, home ownership has slipped beyond the reach of many – but even when it does become easier for first-home buyers to get a grip on the property ladder, there will be some who deliberately turn their back on it. They are content to keep renting and some of them may continue to do so for the rest of their lives. Today, a number of renters are not necessarily shut out of the property market – they are deliberately ignoring it for a number of reasons. Living in a home that’s in a totally different league from what you could afford to buy is one of the biggest attractions to signing up for a lease instead of a mortgage.

But there are other reasons why many believe it’s better to rent a home than buy one. Some have landed jobs or business opportunities away from home and need somewhere to live in comfort and style for an extended period. The arrival of multimillion-dollar film and TV productions in Auckland has created an unprecedented demand for fully furnished residential rentals. High-end furnished rentals to house A-list stars and Hollywood crews first became a factor in the early 2020s when Amazon’s Lord of the Rings TV series and the America’s Cup took place in Auckland at around the same time. Fully furnished homes continue to be a niche but growing market in residential rentals.

Here’s why some people are choosing to rent over buying.

1. Vibrant Social Life

You get to live in a part of the city that’s pumping. Rent an apartment in one of the many high-rise buildings springing up across Auckland, or a designer townhouse, and residents have access to a cluster of the best bars, cafes and restaurants the city has to offer. And after a night out, getting home is easier; either a short walk or low-cost Uber ride away. It’s a lifestyle that’s arguably more buzzy than living in the sedate suburbs – and particularly appealing to those who have either returned to New Zealand from overseas, or dream of living in Manhattan one day.

2. Home Away From Home

3. Premium School Zones

Parents are willing to pay a premium to rent houses in certain suburbs so they can send their children to sought-after schools for free. For example, residing in certain parts of Remuera, Epsom, Parnell and Mt Eden, known as Auckland’s “Double Grammar” zone, allows people to send their children to esteemed state schools Auckland Grammar and Epsom Girls’ Grammar.

4. Embracing A Life Of Style

Renting can give you access to a beautiful home in an established neighbourhood. If you can afford the cost of a premium rental, it’s possible to enjoy the perks of a great location. Top-of-the-market rents mean high-spec houses with designer bathrooms and kitchens. There are also nearby cafes to meet friends and plenty of parks for leisurely strolls. Some luxury rentals, such as The International apartment block on Princes St, Auckland City, offer amenities such as a concierge service, heated outdoor swimming pool, gymnasium, cinema, wine cellar and library – facilities more commonly found in a five-star hotel.

5. Try Before You Buy

It’s a good way to experience a new area that looks like a great place to live, or experiment with downsizing from a larger home to a townhouse or apartment. Try before you buy to see if the neighbourhood (and the neighbours) are what you’re expecting.

6. Work It

The need for a home large enough to cope easily with a wfh situation is another reason people are opting to rent. For some, their work demands a home near the central city that has space for a dedicated office or a garden studio. While buying this kind of place might be out of reach, renting a work/live space can be financially viable. Some of these renters have a permanent home in another part of the country but need a second home because they are frequently staying in the city for business.

Renting at the high end of the market means virtually saying goodbye to property maintenance and upkeep. Just phone the property manager when anything’s not working and sit back and enjoy the sound of the lawnmower as someone else keeps the garden ship shape.

8. Room With A View

Renting can enable you to live with a view that you couldn’t afford to own. And this, it turns out, can have benefits for your health. Most of us agree that water, coastal and bush views are aesthetically pleasing, but scientific research has revealed that gazing upon a sweeping landscape can offer a sense of tranquillity and calm, helping to reduce stress levels. Living with a view is considered beneficial because it provides a connection to nature, enhances your sense of well-being and can boost your mood. Studies have shown that people who live near the coast or have views of the ocean tend to have better mental health.

9. Building A Different Kind Of Future

There’s another category, too: those choosing to rent rather than buy the home they live in, while actively investing in growing businesses, and/or mindfully directing resources to other income-generating activities. Often their investment portfolio includes residential rental properties. This new breed has done the number crunching and decided it’s better to rent a home for themselves, while astutely building their own business or investment portfolio.

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