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 Feb-20 Jan-20 Feb-19 Peak % Fall
                 
New Zealand         4,942,800 640,000 $23,400 27.4 26.3 25.6 27.4 0%
                 
Whangarei District             89,700 830,000 $24,700 33.6 35.9 36.4 44.6 -25%
                 
Auckland metro         1,486,000 888,000 $27,730 32.0 31.2 31.1 34.2 -6%
 - North Shore            225,800 1,155,000 $31,460 36.7 34.7 32.8 38.6 -5%
 - Waitakeres             204,500 830,000 $28,964 28.7 29.0 28.1 31.7 -10%
 - Auckland City            444,100 1,015,000 $34,060 29.8 27.7 29.9 33.0 -10%
 - Manukau             368,500 850,000 $28,600 29.7 29.5 30.5 32.9 -10%
                 
Hamilton             165,400 644,000 $24,960 25.8 24.8 24.8 26.5 -3%
                 
Tauranga             131,500 735,000 $27,300 26.9 27.0 28.4 29.3 -8%
                 
Rotorua              71,700 515,000 $22,620 22.8 20.9 23.8 23.8 -4%
                 
Gisborne              48,500 450,000 $20,280 22.2 20.2 24.2 24.2 -8%
                 
Hastings              62,000 600,000 $25,480 23.5 22.8 22.3 25.0 -6%
                 
Napier              79,900 510,000 $23,400 21.8 24.5 23.7 24.5 -11%
                 
New Plymouth              80,700 525,000 $22,360 23.5 20.5 21.5 23.5 0%
                 
Whanganui              44,500 345,000 $19,864 17.4 18.1 15.1 20.8 -17%
                 
Palmerston North              87,300 522,000 $21,840 23.9 23.6 23.0 23.9 0%
                 
Wellington metro            487,700 716,000 $27,479 26.1 23.4 25.3 26.3 -1%
 - Kapiti Coast              52,700 665,512 $26,000 25.6 23.2 25.9 27.1 -6%
 - Porirua              56,100 794,000 $29,120 27.3 28.2 29.1 29.4 -7%
 - Upper Hutt              43,200 $521,650 $28,600 18.2 19.2 19.9 22.5 -19%
 - Lower Hutt             104,700 660,000 $28,080 23.5 21.8 23.8 27.9 -16%
 - Wellington             212,700 812,000 $34,840 23.3 21.7 23.9 25.5 -8%
                 
Nelson              51,400 575,000 $22,880 25.1 23.4 25.8 25.8 -3%
                 
Christchurch City            381,500 473,000 $23,348 20.3 20.5 21.1 21.9 -8%
                 
Timaru District             47,100 375,000 $18,200 20.6 18.9 22.0 22.0 -6%
                 
Dunedin             128,800 520,000 $23,764 21.9 24.5 20.7 25.2 -13%
                 
Queenstown-Lakes              37,100 1,030,000 $26,000 39.6 40.6 33.8 41.2 -4%
                 
Invercargill              54,800 327,500 $18,200 18.0 19.0 19.9 21.6 -17%

 

 

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

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