New Zealand and the United States are both wonderful places to live. Both countries offer a similar standard of modern living, with fantastic job opportunities.
But which country is more affordable? You must consider several common factors. Let’s take a closer look at how New Zealand’s cost of living compares to the United States.
Cost of Living in America
Many people move to the United States in hopes of living the American dream. But living in the USA can be quite expensive, depending on your location. You can compare cost of living across different states. The cost of food, services and rent varies across different states and cities.
Big cities like San Francisco, Los Angeles and New York are known to be very pricey. In fact, they have some of the highest rent costs in the world. In San Francisco, the average cost of monthly rent is $3665.09 US for a 1-bedroom apartment. In New York, renting a 3-bedroom apartment outside the city center costs 3,388.19 US per month. Common household services like HVAC maintenance can cost as much as $150/ hr
If you’re on a budget, it’s best to avoid the big cities entirely. Southern areas and small towns usually have a lower cost of living. Alabama, Georgia, Indiana, Michigan and Tennessee are amongst the cheapest places to live. They offer much lower costs on rent, housing costs, transportation, food and utilities.
Cost of Living in New Zealand
Many Americans move to New Zealand in hopes of a more relaxed way of life. It’s a nation known for its laidback lifestyle, beautiful scenery and outdoor activities. Thanks to its natural outdoor beauty, many fun New Zealand activities can be done for free or at a low cost.
Starting a business can be an exciting opportunity. Lots of companies in New Zealand are creating innovative products and services every year. So, the opportunity for success is available to anyone with a savvy business idea. Taxes and financial management in New Zealand are more thorough, as they contribute towards much of the public services.
The cost of rent and housing varies depending on where you settle in New Zealand. As of August 2018, the national median rent for a small house was NZ$390 per week. For larger houses (2-4 bedrooms), the average cost was NZ$525. Sharing a house or “flatting” is common amongst young people in New Zealand. If you’re moving here without a family, it’s a great way to save money.
Like the USA, the big cities in New Zealand have a higher cost of living. Auckland is New Zealand’s largest and most expensive city. The median cost of rent for a 3 or 4-bedroom house is $600. For more desirable houses, rent can cost up to $850 per week. The capital city of Wellington is also an expensive city to live in.
If you want to enjoy city life in New Zealand, Christchurch is a more affordable option. The overall cost of living here is much cheaper than Wellington and Auckland. Other cheap places to live include Rotorua, Hamilton, Gisborne, Napier and Palmerston North.
Cost Comparison
New Zealand’s major cities are more affordable than those in the USA. In Mercer’s 2018 Cost of Living Survey, Auckland ranked lower than Los Angeles, New York & San Francisco. However, some things in New Zealand do cost more. Restaurant prices and consumer prices are generally higher in proportion with average incomes.
The amount you pay on utilities makes a big difference to your overall cost of living. In New Zealand, many utility companies offer affordable plans & deals. A bundled plan is the most cost-effective solution for New Zealanders. This plan combines the costs of electricity, gas, and internet into one simple bill. You can save a lot of money annually by being smart about your utility plan. Utility rates in NZ are generally lower than in the US.
Research
Cost of Living USA
https://www.numbeo.com/cost-of-living/in/New-York
https://www.numbeo.com/cost-of-living/in/San-Francisco
Cost of Living NZ
https://www.newzealandnow.govt.nz/living-in-nz/housing/renting-a-property
https://www.newzealandnow.govt.nz/living-in-nz/money-tax/comparable-living-costs
