It's now more cost-effective to rent than to buy

The cost of rentals has also risen, but nowhere near the cost of servicing a home loan. (Image: Getty)

Mon, 18 Sep 2023

Bank of New Zealand says it’s now much more cost-effective to rent than to buy, with current cash ownership costs at about half of average household incomes, more than double that of renting.The bank’s chief economist Mike Jones said servicing a new house purchase is “much more expensive” than equivalent rent costs, with cash ownership at current interest rates at about 50% of average household incomes, up from 30% in 2020.Rent costs, meanwhile, have nudged up to an average of 24% of household incomes, or 18% o...

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