Are rich Americans hitting NZ’s high-end rental market?

Wednesday, 14 May 2025

There has been a sharp increase in demand for luxury rental accommodation from North Americans checking out New Zealand opportunities, a high-end real estate agent says.

In February, the National-led Government announced an overhaul of the “golden visa” scheme in a bid to encourage foreign investors to “choose New Zealand as a destination for their capital”.

Since then, New Zealand Trade and Enterprise had seen a significant increase in interest in the Active Investor Plus Visa Programme, an NZTE spokesperson said.

NZTE had received 208 inquiries from interested investors, with 59% of those coming from North America, and traffic to the live deals section of its website had more than doubled to 3000- plus page views per month, they said.

That interest has reportedly translated to an increase in wealthy foreigners, particularly from the United States and Canada, wanting to rent multimillion-dollar homes.

Real estate agent Caleb Paterson, who specialises in luxury multi-million dollar Auckland properties, said he was working with premium rental agency, Stay Luxe, to match investors with high-end properties.

The agency approached him after a surge in inquiries meant they were unable to meet demand, he said.

“While there is a surplus of rental properties at the lower end of the market, high net worth individuals have very specific accommodation requirements, and there is not enough suitable rental stock in the traditional market.”

The approach came at a time when the real estate market was subdued, and there was a growing glut of premium homes languishing on it as sellers did not get the offers they wanted, he said.

“We’ve got vendors who previously would never have considered renting their home now proactively asking us to place it with international clients for six to 12 months, particularly as these international clients are happy to pay well above local market rates.”

The situation had led to a working relationship between his agency and Stay Luxe, and half of Paterson’s listings, which included homes valued between $8 million and $20m, were now available for rent.

In recent weeks rental enquiry had more than doubled, and in the last month he had rented four of the high-end properties on his books to overseas people, he said.

In contrast, a couple of months ago he might have rented one a month.

“People want to come to New Zealand, and these are clients who could buy a home tomorrow if they were allowed.

“But the ability to purchase is not there, and that’s what is driving this surge in ultra-luxury rentals.”

Putting a luxury home on the high-end rental market was an attractive option for property owners as they could see rental returns triple what the domestic market would offer, Paterson said.

“One home might fetch $2000 a week in the traditional market, but it could rent for $6000 to $7000 through private arrangements with vetted international tenants.”

He had not expected this development in the luxury market, but it showed the time was right for the Government to open a pathway for foreign buyers at the $5m plus level, he said.

Stay Luxe co-founder Greg Owen said the amount of high net worth individuals from North America and wanting to rent luxury properties was up on previous years.

Many were coming to look at investment opportunities and were considering what it might be like to live here, he said.

“It is only a few months on from the Government’s ‘golden visa’ changes, but the move opens the country up to people, so when they become aware of it it adds to their interest in New Zealand.

“The country has always been seen as a safe haven with a good standard of living, and global uncertainties mean that is becoming even more attractive now.”

For US visitors the dollar was good which made high-end rental accommodation prices reasonable, and renting a property was a good way of exploring where might be good to live, Owen said.

“Some of the clients we have been working with are living here for 12 to 18 months, and they are checking out the options available to them if they decide to stay more permanently.”

Mischa Mannix-Opie is director of client experience at Greener Pastures New Zealand, a company that works with wealthy investors to gain residency through the Active Investor Plus programme.

She said they had seen a significant increase in demand since the changes to the visa were announced, and the changes had made New Zealand more attractive to their clients.

Most of the growth in demand had come from North America, and particularly the US, although there was some interest from people in Europe and Asia, she said.

“Uncertainty around the world is contributing, but New Zealand is also appealing because of its natural beauty, the lifestyle possible, and its political stability.

“It is seen as a safe haven because it is so far away from everywhere else, and for many of the people we are dealing with that’s a huge bonus.”

Greener Pastures launched in January, and clients’ interest in renting high-end properties had increased since then, she said.

“Some have been thinking about a move to New Zealand for a while and are keen to have some experience living here first.

“So they come down here for three to four months, and try out living in a few different regions to see what it is like to live here rather than just visit, and to meet people and make connections.”

Even if people were not looking to relocate permanently, they liked knowing New Zealand was open to bringing in financial and human capital, and that there were suitable rental options for them if need be, she added.