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.

        Rent ratio
  Population House price Rent Dec-19 Nov-19 Dec-18 Peak % Fall
                 
New Zealand         4,942,800 629,000 $23,400 26.9 26.9 25.0 26.9 0%
                 
Whangarei District             89,700 805,000 $22,620 35.6 34.1 36.1 44.6 -20%
                 
Auckland metro         1,486,000 890,000 $28,112 31.7 31.2 31.4 34.2 -8%
 - North Shore City            225,800 1,050,000 $33,280 31.6 31.1 30.4 38.6 -18%
 - Waitakeres City            204,500 805,000 $27,820 28.9 28.7 29.4 31.7 -9%
 - Auckland City            444,100 1,030,000 $33,800 30.5 29.6 28.3 33.0 -8%
 - Manukau City            368,500 900,000 $29,120 30.9 28.2 29.1 32.9 -6%
                 
Hamilton City            165,400 620,000 $24,284 25.5 25.4 24.4 26.5 -4%
                 
Tauranga City            131,500 710,000 $26,624 26.7 26.7 25.4 29.3 -9%
                 
Rotorua District             71,700 457,500 $23,400 19.6 21.0 21.5 23.8 -18%
                 
Gisborne District             48,500 410,000 $20,800 19.7 19.4 18.1 24.2 -19%
                 
Hastings District             62,000 585,000 $23,920 24.5 23.0 19.8 25.0 -2%
                 
Napier City             79,900 500,000 $23,400 21.4 20.4 20.3 23.9 -10%
                 
New Plymouth District             80,700 510,000 $21,424 23.8 20.7 22.0 23.8 0%
                 
Whanganui District             44,500 305,000 $18,460 16.5 17.3 14.8 20.8 -21%
                 
Palmerston North City             87,300 495,000 $22,620 21.9 21.7 20.1 23.5 -7%
                 
Wellington metro            487,700 685,000 $26,850 25.5 26.3 23.6 26.3 -3%
 - Kapiti Coast District             52,700 675,000 $26,000 26.0 25.5 24.6 27.1 -4%
 - Porirua City             56,100 775,800 $27,040 28.7 25.9 25.2 29.4 -2%
 - Upper Hutt City             43,200 $0 $28,080 0.0 18.8 18.0 22.5 -100%
 - Lower Hutt City            104,700 616,000 $30,160 20.4 23.0 19.3 27.9 -27%
 - Wellington City            212,700 803,500 $33,800 23.8 24.0 22.7 25.5 -7%
                 
Nelson City             51,400 605,000 $26,364 22.9 25.5 23.9 25.8 -11%
                 
Christchurch City            381,500 472,500 $22,880 20.7 21.5 21.0 21.9 -6%
                 
Timaru District             47,100 368,000 $18,564 19.8 19.9 19.5 22.0 -10%
                 
Dunedin City            128,800 485,000 $21,580 22.5 25.2 19.2 25.2 -11%
                 
Queenstown-Lakes District             37,100 979,000 $26,000 37.7 36.5 41.2 41.2 -9%
                 
Invercargill City             54,800 336,000 $17,420 19.3 20.6 16.0 21.6 -11%

 

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.

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Contact:

For sources, definitions, and methodology, please contact:

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www.interest.co.nz
JDJL Limited
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