Relocating to Auckland, New Zealand's largest city, offers expats and migrants an enviable lifestyle. The city combines the energy and vibrancy of a major urban centre with the stunning natural beauty that surrounds it, including harbours, islands, beaches, forests, and volcanic cones. Nonetheless, it's essential for new arrivals to have realistic expectations regarding the cost of living, which may differ significantly from their home country.
Here are the top 5 things we discuss with our clients to help them budget for life in Auckland:
Rent
Housing is relatively expensive in New Zealand, and this is especially true for rental properties.
While overall rental prices across the nation remain relatively stable, Auckland's rental market is still reaching record highs according to the latest Trade Me Rental Price Index,
For instance, in September, the median weekly rental for a three to four-bedroom house was $770, while a one-bedroom apartment in the CBD averaged $650 per week. Factors such as proximity to the CBD, good transport links, school zones, and amenities influence pricing so properties in many areas will be well above these median levels.
Utilities
Budgeting for essential services like electricity, gas, and internet is necessary as they are not often included in the weekly or monthly rental payment. Costs are usage-based and can vary depending on the property's location, size, and the number of users.
It's advisable to compare plans and offers from multiple providers before signing up, as many offer a variety of contract options. For example some electricity companies offer ‘1 hour free power’ each day which can be a real money saver if you can schedule high-electricity use activities like using a dryer or over during that period.
Transportation
Auckland's public transport system includes trains, buses, ferries, and, starting in 2024, upgraded light rail.
If planning to commute frequently to the CBD, public transport offers affordable options, including discounts with the Auckland Transport HOP card.
If you prefer to drive, or plan on purchasing a car, in addition to the vehicle cost, you need to factor in fuel, insurance, servicing, and parking costs (which can range from $5-$10 per hour in the city centre depending on location and the time of day you enter and exit the car park).
Something else to consider is if a rental property doesn’t come with a parking spot you may also need to purchase a residents parking permit for your neighborhood.
Groceries
The three large supermarket chains New World, Countdown and Pak ‘n’ Save are located in most Auckland suburbs and this is where you will find your everyday groceries and personal items. There is also a Costco store if you want to buy in bulk.
Prices can differ from store to store and season to season so it can be worthwhile comparing the cost of your grocery list using the supermarket websites.
Some suburbs also have fruit and vegetable stores where produce may be cheaper and there are often weekend farmers markets throughout Auckland which can be good for sourcing local produce and Artisan goods.
Insurance
It is important to factor in the cost of any insurance you require when calculating your monthly expenses. If you plan to purchase a vehicle then car insurance is a necessity, as is contents insurance if living in rental accommodation.
Although the landlord will have insurance for the building it is the tenant’s responsibility to take out contents insurance to cover their own furniture and personal effects. Whilst this isn’t a compulsory cost, it is highly recommended - the monthly cost depends on the replacement value of your belongings.
New Zealand has a public healthcare system so paying for private health insurance is not a requirement and many New Zealanders do not have it. It is something you can consider though if you wish to gain fast access to the private healthcare system for non-urgent conditions.
In summary, understanding the costs of living in Auckland goes beyond financial awareness. It is essential for practical reasons and can also have a profound impact on your overall experience and success in this vibrant city.
It allows you to make informed decisions regarding your budget, lifestyle choices, and housing options and empowers you to plan and manage your finances effectively. ensuring that your transition to Auckland is as smooth as possible.
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If you are a recruiter or HR Professional bringing international talent to NZ Mobile Relocation has a range of settlement support services to suit your candidates and your business - from baseline support to meet Immigration New Zealand’s AEWV Accreditation requirements (Kiwi LaunchPad) through to personalised programmes to support your most valued international employees.
To book a demo of Kiwi LaunchPad, or to better understand how Mobile can help you to ensure you are offering the right resettlement services for your candidates and your business, contact our Principal Bridget Romanes.
Bridget is a New Zealander who has lived and worked as a diplomat in Singapore and India. After experiencing all facets of the relocation experience, she founded Mobile to work with private individuals moving to NZ and leading local and international businesses bringing in offshore talent.