• Ultra-high-net-worth individuals from the United States and Canada are renting multimillion-dollar homes in New Zealand, fueled by uncertainty about changes to foreign buyer rules.
• These clients are seeking short-term leases, often paying $20,000 to $30,000 per week, while they wait for clarity on new investor visa pathways and possible amendments to the foreign buyer ban.

A surge in wealthy North American investors anticipating changes to New Zealand’s foreign buyer rules is driving a sharp rise in off-market luxury home rental demand, according to property experts. Real estate agent Caleb Paterson says the country is seeing increased interest from ultra-high-net-worth individuals, particularly from the United States and Canada, who are looking to secure short-term leases in multimillion-dollar homes, while they wait for clarity around new investor visa pathways and possible amendments to the foreign buyer ban.

1. Median days to sell in Auckland properties valued at $3.5 million have risen from 42 days in March 2024 to 64 days in March 2025 listings.
2. Days to sell for luxury listings in Queenstown have climbed even higher, reaching 95.

“These are clients who could buy a home tomorrow if they were allowed,” says Paterson, founder of Paterson Luxury Real Estate. “They’re testing the waters, sometimes paying $20,000 to $30,000 a week to rent properties that fit their lifestyle and long-term ambitions.”

Paterson says the dynamic is reshaping how vendors approach the luxury market, with many now embracing a ‘try-before-you-buy’ model as a way to attract offshore tenants and potentially convert them into future buyers.

“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. If the foreign buyer ban is lifted, we expect many of these tenants will put in an immediate purchase offer on these homes,” says Paterson.

He says New Zealand Trade and Enterprise has reported a 700% increase in the number of people visiting the Active Investor Plus Visa application page, compared to the older version of the visa at the same time last year.

• Paterson says the shift comes amid rising uncertainty in key offshore markets.
• Many of his Canadian clients are seeking to exit due to proposed wealth taxes and capital gains reforms, while American buyers are increasingly motivated by political instability and upcoming elections.

Half of Paterson’s current listings – which include homes valued between $8 million and $20 million – are now available for rent, and many are receiving multiple enquiries before even hitting the open market.

Paterson says some owners have seen rental returns more than triple what the domestic market would offer, particularly when facilitated through high-end rental agencies. “There’s a lot of wealth sitting in our homes that isn’t being unlocked because we’ve frozen out foreign investment. Opening a pathway for buyers at the $5 million-plus level could drive a major reinvestment cycle and ease pressure across the market,” says Paterson. Paterson believes now is the perfect time for the Government to remove the current uncertainty preventing downsizers from moving to the next stage in their life. “We’re coming into winter, which is typically a quiet time, and without clarity, we’re seeing people sit on their hands. I’ve had Kiwi clients walk away from retirement village agreements because they can’t sell their homes, and that’s clogging up movement across every tier of the market.”

Paterson says a typical high net worth downsizer will reinvest most of the proceeds from the sale of a $5m plus home in local businesses as they look to build their retirement incomes.

“Letting high-value buyers into the country not only stimulates the property sector it also brings in capital, supports tradespeople and helps unlock the next stage of the housing cycle. If this is done right there will be a transfer of wealth that benefits New Zealand down the track,”

says Paterson. He emphasizes that the shift is not just about attracting foreign investment but also about providing a better life for New Zealanders, particularly those in their retirement years. “We’re not just talking about a luxury rental boom, we’re talking about a chance for New Zealanders to have a better quality of life, to live in the homes they love, and to enjoy the benefits that come with owning a home,” says Paterson. With the current uncertainty preventing downsizers from moving to the next stage in their life, Paterson believes it’s essential for the Government to provide clarity on the foreign buyer rules and the investor visa pathways. “The Government needs to take action now to provide certainty and unlock the potential of our luxury market. Without it, we’ll continue to see a shortage of homes for sale and a lack of movement across the market,” says Paterson.