New Zealand’s luxury residential rental market is struggling to meet demand, with agents reporting that up to half of high-net-worth travellers seeking premium stays are being turned away due to a lack of suitable properties.
Stay Luxe co-founder Greg Owen said the agency now receives around 50 weekly enquiries from overseas visitors willing to spend up to $15,000 per night on exclusive homes with services such as private chefs and wellness treatments. With supply severely limited, he warned the sector is missing out on millions in potential revenue for property owners and the wider tourism economy. “Many of these homes sit unoccupied while demand goes unmet. Unlocking that capacity is critical to expanding New Zealand’s accommodation infrastructure,” Owen said.
The shortage is particularly concerning ahead of changes to foreign buyer rules, as wealthy individuals often use extended luxury stays ranging from three weeks to 12 months to test communities before investing in multimillion-dollar properties. Owen said about 10% of renters eventually purchase the homes they stay in, underlining the role of luxury rentals as a pipeline for foreign investment.
Enquiries are strongest from North America and Europe, with one recent case involving $500,000 for a 90-day stay, plus a further $150,000 for staff and services. Another booking worth $150,000 was confirmed online without prior inspection.
Stay Luxe estimates luxury rentals can generate two to three times the return of long-term leases, offering both income and professional management. Owen urged owners and policymakers to recognise the market as core tourism infrastructure, warning that unless supply grows, high-value travellers will opt for destinations such as Australia, where inventory is better developed.