New Zealand inspires pictures of mountains, forests and pristine lands. After all, this is the land of Middle Earth, kiwis, backpackers and delicious wine!
On the other hand, it is also a place that can suck all of the money in your pocket and often, the country turns out to be more expensive than most people expected.
Working out the cost of living in New Zealand is essential, if you are planning a trip, or looking to live and work there. New Zealand is located in the southwestern Pacific ocean and this can make it expensive to transport goods and products from other countries.
Another reason for the country’s high cost of living is tourists. Prices go up because many tourists are ready to pay big money during their trip to New Zealand.
In this guide, we will outline everything you need to know about the cost of living in New Zealand.
Firstly, let’s answer some basic questions.
The New Zealand dollar – which to no surprise is also called the ‘kiwi’ informally.
Similar to many currencies, the bills come in denominations of $5, $10, $20, $50 and $100 whereas the coins come in 10c, 20c, 50c, $1 and $2.
In New Zealand, you can exchange your money in the following places:
Note: You might get better value by exchanging your money at a bank than at a currency exchange kiosk or a retailer.
These rates are bound to change so make sure you check the rates at the time you travel.
The most expensive cities without a doubt are the biggest – Auckland, Christchurch, Wellington and Queenstown. Job opportunities are widely available and making these places attractive for New Zealanders and backpackers alike. This has led to increasing living and housing costs.
Rotorua, Dunedin, Hamilton and Napier are slightly smaller and cheaper cities, but they are still popular among ex-pats.
You can expect to pay the below prices for accommodation in Auckland :
One-bedroom apartment costs
Two-bedroom apartment cost
Three-bedroom apartment cost
Four-bedroom apartment cost
An alternative which would be cheaper is sharing accommodation with other people, also known as ‘flatting’. This can cost between 160-350 NZD (106-232 USD) per week. The price depends on the area and if you are going to live with one or five other people.
The cheapest cost for a 1-bedroom house, if you are going to buy it is around 500,000 NZD (331,960 USD), for a two-bedroom house, the range is from 500,000 -800,000 NZD (331,960- 531,136 USD). If you want a 4 or more bedroom house, the prices are around 800,000- 1,000,000 + NZD (531,136- 663,920 + USD).
Note: it’s mostly residents that can buy houses in New Zealand, but there are cases where you may still be able to buy a house as a non-resident.
Most of the apartments or houses in New Zealand are unfurnished, so you will have to buy your own furniture and appliances. For example, a washing machine will cost around 700-1,000 NZD (464-663 USD).
A 32 inch flat-screen TV will cost around 300-500 NZD (200-331 USD), and the more expensive models will cost more than 1000 NZD (663 USD). For a 49-50 inch TV, you will pay between 1000-1500 NZD (663-995 USD). A single-door fridge will cost around 1000-2000 NZD (663-1,327 USD).
The good news is that most people buy second-hand appliances in New Zealand. You can buy second-hand items on:
There are over 30 distributors of electricity in exclusive geographical areas in New Zealand. You can choose the plan which is suitable for your needs.
Low-user plan rate:
27c per kWh, households that consume less than 8,000 kWh per annum
Standard-user plan rate:
28c per kWh, they pay daily fixed charges from 1.50 to 2.50 NZD per day (1- 1.66 USD).
You can also choose payments options- weekly, monthly or fortnightly with direct debit, internet banking, post shop, or via an app.
Unlike electricity, there is only one water provider in New Zealand and that is Watercare.
Here is an example of an actual bill on electricity and water (2 months, 4 people):
Electricity – 428kW x 0.276 (rate per kWh) = 118.10 NZD (78.41 USD)
Water – 40kL x 3.57 (rate per kL) = 142.80 NZD (94.81 USD)
The good news with the internet is that most flats offer free wi-fi because you can connect to the wi-fi of your landlord.
For two people, the average monthly spending is around 600 – 700 NZD (398-464 USD) and this is if you cook at home. The cheapest wine that you could find is around 9 NZD (6 USD). A pack of cigarettes is around 29 – 47 NZD (20 – 32 USD).
When dining out in a restaurant, a very cheap meal would cost around 35 NZD (23 USD) for two people. The mid-range price is around 60 NZD (40 USD) for two again. Everything above this price is meaning that you are eating fancy food.
One of the most expensive restaurants in New Zealand is called SIDART. The main dish in this restaurant will cost around 45 NZD (30 USD).
If you prefer fast food, you have the option of McDonald’s:
Then for drinks:
In KFC:
A Subway sandwich:
It’s not a custom to tip in New Zealand, so you’re not necessarily required to tip. Nonetheless, like many countries that don’t have tipping as a custom appreciate it, particularly services like restaurants.
The cost of coffee is around 3.50-6 NZD (2.32-3.98 USD).
All of the major cities and most towns have busses. However, New Zealand has limited public transportation across different towns in North and South islands and this is why most kiwis prefer to buy a car.
Most public transport users use an AT HOP card. You can use it for buses, trains and even ferries. Sometimes, a free ride can be offered and even a discount if you use this card. It is much cheaper to travel with it than to pay in cash.
One trip on the bus is around 2-3.50 NZD (1.33-2.32 USD), and this is depending on the line that you are on.
If you will be in New Zealand for a longer period of time, you should probably consider buying a car. Most kiwis prefer owning a car. It’s very common to buy second-hand cars in New Zealand. They are way cheaper and more common to see in the streets than you think. The cheapest car that you can buy will cost around 3,000 NZD (1,991.76 USD).
The prices fluctuate on a day to day basis, but there is a very useful site that you can use – www.pricewatch.co.nz. This site shows you how much people are paying at gas stations and you can see a map of the whole country.
The petrol price is around 2.82 NZD for a litre (1.87 USD). Price changes from town to town and it’s more likely that the petrol price will be cheaper in major cities like Auckland.
This is depending on your needs, how much data use, and how many minutes you have, but the average is around 26 NZD (17.26 USD).
According to Google, the mobile operator called 2° has the best unlimited mobile plan. Some of the other service providers are Vodafone and Spark.
Some of the low-cost clothing stores are the Warehouse and Kmart, where you can buy clothes from 5-30 NZD (3.32-19.92 USD). Another preferred low-cost clothing store is Cotton: on with prices again from 5-50 NZD (3.32-33.20 USD).
One of the cheapest shoe stores is Number one shoes. They offer a lot of deals, like for example, buying a second pair of shoes at a cheaper price.
New Zealand’s public health system is subsidised by the government. You can use it if you are a New Zealand citizen, a resident of New Zealand, or if you have a valid work visa for more than two years.
ACC (Accident compensation corporation) is a government agency that provides personal injury cover for all New Zealand residents and visitors to New Zealand, including those with a work visa for less than 2 years.
As for the doctor’s visit, it costs 45-60 NZD for an adult (29.88-39.84 USD) and it’s free for children under the age of 13. A dentist check-up for an adult is around 70-150 NZD (46.47-99.59 USD).
As for leisure, one of the top things to do is to watch a movie and a ticket would typically cost around 20 NZD (13.28 USD).
Total cost = 432 NZD per week.
You will usually get paid around a minimum of 21.20 NZD per hour X 40 hours (per week) = 848 NZD per week (563 USD). After taxes, this will be around 715 NZD per week (474.70 USD).
Total for the week around +/- 1,065 NZD (707.07 USD).
This is around +/- 4,260 NZD (2826.30 USD) per month. (Without mobile costs for each member of the family and other extra expenses).
If both parents earn the minimum wage which is 21.20 NZD per hour X 80 hours = 1696 NZD (1126 USD) per week before taxes. After taxes, they will be left with around 1,287 NZD per week (854.47 USD).
In a nutshell, one (or would be best if both) of the parents earn more than the minimum wage.
Total for the week 987.50 NZD (655.62 USD).
The yearly income for a medium high paid job in Auckland is 110,000 NZD (73,031.20 USD). After taxes, this will be around 1,600 NZD per week (1062.27 USD).
The conclusion would be that living in New Zealand requires a high-paying job in order for you or your whole family to live comfortably.
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Read Also:
New Zealand Working Holiday Visa – The Complete Guide
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New Zealand is an incredible destination to discover. In terms of natural scenery, it is definitely one of the most beautiful countries in the world. With its English-speaking residents and laid back culture, it has long been a popular destination for travellers. In 2019, 3,8 million tourists and other travellers visited New Zealand.
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