Nation's price gap ranks in global top 10, says study
Compare the Market research has confirmed that New Zealand has one of the largest price gaps between renting and buying in the world.
The study found that mortgage payments on average are 34.90% more expensive then rent across New Zealand.
New Zealand placed eighth in the global study which was based on an average three bedroom home/apartment.
The overall ratio focuses on the average rent inside and outside of city centres, so it wouldn’t be possible to pinpoint and comment on certain regions.
The ranges for rent inside and outside of city centres as of March 2022 are as follows:
- Inside of city centre: $1,785 to $4,200
- Outside of city centre: $1,400 to $3,250
Luxembourg trumped the global list with an average mortgage to rent price difference of 51.1%.
This reflects the high cost of living in the European city with the average rent costing about $3,017 a month paired with a steep estimated monthly mortgage payment of $4,558.
Latvia and Slovakia came in second and third respectively at 42.5% and 42.3% each.
Whilst house prices in these two countries are much cheaper than Luxembourg, it has a similarly high gap between the cost of living and the cost of buying.
Portugal, Hungary, Russia, Czech Republic, Germany, and Canada rounded out the top 10 list.
On the opposite end of the scale, South Africa held a 0.8% price difference with rent prices averaging $865 and the average mortgage payment being $872.
There were also two counties holding a negative price difference percentage with Finland and Italy having cheaper house prices than rent overall.
