The Rise of the American Buyer

The Rise of the American Buyer: What we have seen working with American buyers over the past 12 months.

While the media may be over-hyping the great rush of Americans racing to New Zealand to buy up property, it is true that a steady increase of American buyers are appearing on the horizon in the New Zealand real estate market.

Martelli Buyers Agents has seen a 180% increase in enquiries from Americans preparing to buy their first Auckland home. Our enquiries and clients have come from California and Texas to Florida, Illinois, Tennessee and Colorado.

Yes, some are moving here via the Active Investor Plus (AIP)Visa, while others are arriving through resident visas and applying for consent to purchase via the OIO (Overseas Investment Office) pathway. The idea that all Americans are exceptionally wealthy and looking for a part time holiday home over $5,000,000 is incorrect; the vast majority of our clients are making Auckland their long term permanent home.

They tell us a variety of incentives for their move. For some, the political climate of the USA doesn’t align with their values, for others it’s a fear of growing threats of war and increasing crime. For many they had a vision of New Zealand as green, clean, tranquil and calm which has become more accessible with the AIP Visa in 2026. A weak $NZ dollar, a flat property market, emerging investment opportunities, and a wide selection of beautiful homes helps their cause. The common theme for these buyers is wanting solid advice on where they should buy, what they should buy, how they will develop new friendships and communities, and what they must avoid at all costs.

Buyer’s agent are common place in the USA so the increase in enquiry is not surprising. What is emerging however is a frustration and confusion for buyers trying to understand the New Zealand real estate market. Here are the most common ones:

1. The sale methodologies are confusing

Tender, auction and negotiation methods baffle buyers not used to them. To be fair, many of our local buyers ask the same questions. Where there is an asking price, how do they know if they should offer this or 10% below? Why would an agent chose negotiation over auction?

2. They don’t want to be fleeced for having an accent

I like to think our industry treats all people fairly and acts with integrity. Unfortunately, we know some agents and vendors see a foreign buyer as ripe to pay top dollar, or buy a home without understanding the intricacies, and the first giveaway is their accent and passport. As our recent Californian clients said “we don’t want agents knowing we aren’t from here”

In Anthony Kiedis’s biography Scar Tissue, the Red Hot Chilli Peppers vocalist references a New Zealand home he purchased sight unseen that he overpaid for and didn’t realise was in a high rainfall area. If only a buyer’s agent had been there to give him better advice!

3. Due diligence surprises

American buyers are often surprised by how much responsibility rests with the purchaser in New Zealand. They are quickly learning about unconsented works, drainage and slipping risks, zoning changes and threats of losing your view, body corporate rules and what can go wrong. This isn’t the Kiwi dream they had envisaged. Our most recent purchase for an American buyer in Parnell involved two building inspections, a builder to site, a geotechnical engineer and a town planner. Having the best possible team around you is essential if you don’t know the (literal) lay of the land.

4. Building surprises

In such a small and isolated market, building costs in Auckland can be higher than American buyers expect, while the normal inclusions of an American home can be luxuries here. Features that are often considered standard in the United States, such as double glazing, high-quality insulation, central heating, larger garages and multiple living areas, are upgrades in New Zealand and you will have to pay handsomely for them. We are highly regulated in our building codes too, so the idea of having your dream home designed, consented and ready to move into in a limited time-frame and in line with a USA budget is rarely a reality.

5. The scenery in the movies and the reality are not the same

I was speaking to a family from Massachusetts who liked the look of Takapuna and wanted a beachside home near the city but also asked where they could keep horses nearby. When we sidetracked to Coatesville, they discovered a 40 to 60 minute drive to the CBD. We don’t have mega highways and extensive public transport networks: the drivetime to work often dictates the home.

6. They want how much?

One of the biggest lessons is that location often matters more than land size. A character villa on 500 square metres in Herne Bay may cost as much as a much larger home on 2,000 square metres in Epsom. Coastal, walkable and village-style suburbs command a significant premium because of lifestyle, school zones, scarcity and proximity to amenities, but also come with more risks – erosion, built out views, zoning changes. The correlation between home values, home styles and location is not linear.

Summary: A different market, not difficult buyers

American buyers are not difficult. They are making decisions in a property market that operates differently from the one they know. They want clear advice on sale methods, pricing, due diligence, development potential, building costs and the trade-offs between different Auckland suburbs, while also managing the emotional load of leaving their home country and moving to a new one.

At Martelli Buyers Agents, we help American and international buyers understand what they are buying, what it is worth and what could go wrong. We provide independent advice, manage the due diligence process and help clients focus on properties that suit their budget, priorities and long-term plans.

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