Ownership has its costs—but also value
Despite the weekly savings in some regions, Davidson cautioned that buyers must consider the full cost of homeownership, noting they would also need to account for insurance, rates, ongoing maintenance, and the ability to save for a deposit, RNZ reported.
He added that recent shifts in the housing and interest rate landscape have created conditions where homeownership is becoming more accessible in some areas.
“I think generally it’s unlikely to have been the case over the past three or four or five years that mortgages have been cheaper than rent in too many areas, particularly because, for a start, house prices were high and then, secondly, they started to come down but interest rates were still high,” Davidson said.
Interest rate trends favour home buyers
Davidson noted that while rents have flattened over the past 18 months, house prices remain 16–17% below peak, tipping the balance for buyers, RNZ reported.
“In some areas at least at face value there’s value there in paying a mortgage rather than paying rent,” the CoreLogic economist said. “But of course there are other costs to take into account with homeownership.”