How does new zealand's cost of living compare to that of the united states?

Question

i am a u.s. citizen interested in moving to new zealand.

how does new zealand's cost of living compare to that of the united states and what is the dollar value conversion?

Answer 1

Once you earn an NZ salary, you'll probably feel as follows:

1. Homes and their mortgages seem cheaper in NZ than in the US, even though interest rates are much higher (close to 10% now). NZ$ 250.000 in the South to 400.000 in the North will buy something average, and above that you're entering into the territory of some pretty seriously nice stuff.

2. Energy costs for gas and electricity appear to be similar (typical electricity bill for a 3-person household around NZ$120 in the cold south, 9kg LPG cylinder filling NZ$ 28, and usually one to two necessary per month)

3. Driving will cost you less than in the US, as fuel prices are similar (NZ$ 2 for a litre now), but distances tend to be shorter (few people commute more than 6 miles to work), and the cars we usually drive here get much better fuel economy than the majority of cars in the US (the most commonly owned cars here would be things like the Subaru Legacy, Honda Accord, Toyota Camry, Nissan Maxima, etc., often with far smaller engines than in the US, more 4-cylinders here); there are SUVs and pickup trucks here, too, but they are mostly Japanese diesels (Toyota, Mitsubishi, Nissan), and will give you about 25 to 28mpg, not like a Chevy Tahoe V8, to which we have no equivalent.

4. Used cars will seem more expensive than in the US (a 1995 Japanese sedan with reasonably low mileage still commands about NZ$ 5000)

5. Food prices will seem about twice as high as in the US

6. Insurance premiums are ridiculously low to non-existent in NZ; collision insurance (or full coverage, as they say here) for a brandnew car will be the equivalent of around US$ 30 a month for most cars (it is for my SUV, a 2007 Outlander), health insurance is universal anyway and you don't pay extra (it comes out of the paycheck, and those who don't have a paycheck, like your kids, are automatically covered), as is the retirement plan, and a lovely thing called "ACC", a universal accident cover plan which ensures you get paid 80% of your salary if you can't work due to an accident - so that is money you don't actually spend extra

7. Deductions are 30 to 39% of your salary, but they cover the social aspects I mentioned above, and then some (like UI, etc.)

8. Imported goods will seem more expensive than in the US (e.g. designer labels, European cars)

9. Restaurant meals will seem more expensive than in the US (glass of wine NZ$ 6 to 9, pint of beer NZ$ 4 to 7, big breakfast with bacon and eggs, sausages, toast, etc. NZ$ 16 to 20, cup of coffee NZ$ 4, and there are no free refills - but man, that's some really good coffee here, none of that gasoline-flavored dish water they serve in the US).

10. Schooling for your kids is actually free, unless you choose a private school; but the schools here are pretty fab, I know, because I teach.

On the whole, and all things considered, my impression is that you will feel your buying power will be similar in NZ to how it was in the US, once your money is generated in NZ. Most immigrants earn good money here, as they are usually highly qualified people (have to be, in order to get in). NZ$ 50.000 to 100.000 per annum would be where most well-qualified people sit with their incomes before deductions, and that is actually enough to live quite comfortably, unless you're in Auckland, where things can be a lot more expensive (houses, add about 50 to 100%, and you'll want to, because choosing your address wisely is important there. Not so much in other cities here though).

The US$ exchange rate is currently at around 1.5 I believe (= 1US$ will buy NZ$ 1.50), but this fluctuates.

Answer 2

Best to ask the new Zealanders that question. This is Australia