The ratio between New Zealand house prices and rents | the Rent Ratio

Rent ratio

The data on this page relates the median house price to the annual house rent. It is a benchmark that is used internationally in the reviews of housing affordability, and is just one of a number of measures that can monitor this. For comparisons to US housing markets, see this NY Times review. The market peak referred in the following table differs for each city/district reviewed, and is specific for that city.

 

  Population House price Rent May-20 Apr-20 May-19 Peak % Fall
                 
New Zealand         5,002,100 620,000 $23,920 25.9 27.8 24.8 27.8 -7%
                 
Whangarei District             89,700 840,000 $23,920 35.1 36.6 35.1 44.6 -21%
                 
Auckland metro         1,486,000 910,000 $29,791 30.5 32.1 29.8 34.2 -11%
 - North Shore            225,800 1,000,000 $34,320 29.1 34.7 30.2 38.6 -25%
 - Waitakeres             204,500 840,000 $28,600 29.4 30.6 27.4 31.7 -7%
 - Auckland City            444,100 1,060,000 $37,284 28.4 30.8 28.0 33.0 -14%
 - Manukau             368,500 874,000 $29,120 30.0 28.5 25.7 32.9 -9%
                 
Hamilton             165,400 645,000 $24,440 26.4 25.8 24.8 26.5 0%
                 
Tauranga             131,500 659,000 $27,560 23.9 25.4 25.5 29.3 -18%
                 
Rotorua              71,700 480,000 $23,920 20.1 22.1 20.6 23.8 -16%
                 
Gisborne              48,500 415,000 $21,320 19.5 17.1 23.2 24.2 -20%
                 
Hastings              62,000 600,500 $25,480 23.6 28.0 21.3 28.0 -16%
                 
Napier              79,900 520,000 $23,660 22.0 26.1 22.9 26.1 -16%
                 
New Plymouth              80,700 480,000 $22,100 21.7 19.6 20.4 24.8 -12%
                 
Whanganui              44,500 310,000 $19,760 15.7 18.3 15.0 20.8 -25%
                 
Palmerston North              87,300 485,000 $22,620 21.4 25.9 20.2 25.9 -17%
                 
Wellington metro            487,700 677,510 $27,144 25.0 25.3 23.4 26.3 -5%
 - Kapiti Coast              52,700 647,500 $25,740 25.2 23.7 25.7 27.1 -7%
 - Porirua              56,100 699,000 $28,080 24.9 28.1 23.2 29.4 -15%
 - Upper Hutt              43,200 $0 $29,224 0.0 19.5 18.2 22.5 -100%
 - Lower Hutt             104,700 660,000 $28,080 23.5 20.1 18.9 27.9 -16%
 - Wellington             212,700 830,000 $33,800 24.6 22.0 22.5 25.5 -4%
                 
Nelson              51,400 580,000 $25,480 22.8 25.6 22.4 25.8 -12%
                 
Christchurch City            381,500 477,500 $23,244 20.5 19.4 20.2 21.9 -6%
                 
Timaru District             47,100 363,500 $19,760 18.4 17.3 21.9 22.0 -16%
                 
Dunedin             128,800 500,000 $21,424 23.3 21.2 21.3 25.2 -7%
                 
Queenstown-Lakes              37,100 950,000 $26,000 36.5 32.7 38.5 41.2 -11%
                 
Invercargill              54,800 351,038 $18,720 18.8 14.4 16.4 21.6 -13%

 

 

Median house price:

Median house prices are as reported by the Real Estate Institute of New Zealand. Although the REINZ series is more volatile than the QV equivalent, there is a highly positive correlation between the two series. The REINZ series is more current and offers an earlier indication of market trends.

Rent: The median rent is as sourced from the Department of Housing and Building (DBH) and their Tenancy Bond database.

Disclaimer

IMPORTANT – PLEASE READ

No reader should rely on the contents of this report for making a specific investment or purchase decision. The information in this report is supplied strictly on the basis that only overall market trends are being reported on, and that all data, conclusions and opinions expressed are provisional and subject to revision. If you are making a specific investment or purchase decision, you are strongly advised to seek independent advice from a qualified professional you trust. The conditions and disclaimers set out at www.interest.co.nz/legaldisclaimer.asp are applicable to this report as well.

This report is made available on these terms only, and neither JDJL Limited nor www.interest.co.nz will accept any responsibility for any actions taken on the basis of information in this report, nor for any error in or omission from this report.

Contact:

For sources, definitions, and methodology, please contact:

David Chaston, Publisher
www.interest.co.nz
JDJL Limited
206 Jervois Road, Herne Bay
PO Box 47-756, Ponsonby
Auckland, New Zealand

Phone: +64 (0)9 360-9670
Mobile: +64 (0)21 997 311
Fax:       +64 (0)9 360-9319