Days to the General Election: 22
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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 Aug-20 Jul-20 Aug-19 Peak % Fall
                 
New Zealand         5,030,000 675,000 $23,400 28.8 28.2 24.8 28.8 0%
                 
Whangarei District             89,700 890,000 $22,880 38.9 36.4 34.0 44.6 -13%
                 
Auckland metro         1,486,000 950,000 $28,771 33.0 32.0 28.9 34.2 -4%
 - North Shore            225,800 1,115,000 $32,240 34.6 33.3 31.5 38.6 -10%
 - Waitakeres             204,500 890,000 $28,600 31.1 29.1 27.4 31.7 -2%
 - Auckland City            444,100 1,092,000 $35,880 30.4 27.6 26.5 33.0 -8%
 - Manukau             368,500 920,000 $30,160 30.5 31.0 26.7 32.9 -7%
                 
Hamilton             165,400 652,500 $24,960 26.1 25.4 23.9 26.5 -1%
                 
Tauranga             131,500 745,000 $27,560 27.0 25.9 25.5 29.3 -8%
                 
Rotorua              71,700 510,000 $23,660 21.6 20.6 20.4 23.8 -9%
                 
Gisborne              48,500 460,000 $21,840 21.1 22.0 20.2 24.2 -13%
                 
Hastings              62,000 615,000 $26,000 23.7 23.7 22.5 28.0 -16%
                 
Napier              79,900 600,000 $25,220 23.8 20.8 20.5 26.1 -9%
                 
New Plymouth              80,700 508,000 $21,840 23.3 23.4 20.3 24.8 -6%
                 
Whanganui              44,500 375,000 $20,124 18.6 18.0 15.4 20.8 -11%
                 
Palmerston North              87,300 523,000 $23,140 22.6 22.0 22.7 25.9 -13%
                 
Wellington metro            487,700 720,000 $26,732 26.9 26.0 23.9 26.9 0%
 - Kapiti Coast              52,700 698,000 $25,480 27.4 27.5 13.5 27.5 0%
 - Porirua              56,100 782,000 $27,820 28.1 27.5 26.6 29.4 -4%
 - Upper Hutt              43,200 $536,650 $32,240 16.6 16.6 16.7 22.5 -26%
 - Lower Hutt             104,700 670,000 $30,004 22.3 20.6 19.1 27.9 -20%
 - Wellington             212,700 820,000 $34,060 24.1 23.5 24.0 25.5 -5%
                 
Nelson              51,400 599,000 $25,844 23.2 22.7 24.5 25.8 -10%
                 
Christchurch City            381,500 495,000 $22,880 21.6 21.5 19.4 21.9 -1%
                 
Timaru District             47,100 385,000 $17,680 21.8 20.9 17.0 22.0 -1%
                 
Dunedin             128,800 519,000 $23,400 22.2 22.0 19.9 25.2 -12%
                 
Queenstown-Lakes              37,100 940,000 $26,000 36.2 42.3 37.7 42.3 -15%
                 
Invercargill              54,800 369,000 $18,720 19.7 19.7 17.4 21.6 -9%

 

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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Days to the General Election: 22
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