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 Oct-20 Sep-20 Oct-19 Peak % Fall
                 
New Zealand         5,095,000 725,000 $24,440 29.7 29.4 26.4 29.7 0%
                 
Whangarei District             89,700 917,000 $25,740 35.6 35.8 33.7 44.6 -20%
                 
Auckland metro         1,486,000 1,000,000 $29,502 33.9 33.7 31.5 34.2 -1%
 - North Shore            225,800 1,150,000 $32,240 35.7 31.8 31.4 38.6 -8%
 - Waitakeres             204,500 917,000 $29,120 31.5 30.4 28.7 31.7 -1%
 - Auckland City            444,100 1,200,000 $35,880 33.4 35.3 29.4 35.3 -5%
 - Manukau             368,500 1,001,000 $30,680 32.6 31.0 27.6 32.9 -1%
                 
Hamilton             165,400 673,000 $26,000 25.9 26.2 25.0 26.5 -2%
                 
Tauranga             131,500 810,000 $28,600 28.3 28.0 27.1 29.3 -3%
                 
Rotorua              71,700 580,000 $24,960 23.2 21.6 21.1 23.8 -2%
                 
Gisborne              48,500 570,000 $22,620 25.2 26.6 22.4 26.6 -5%
                 
Hastings              62,000 620,000 $25,480 24.3 25.0 21.0 28.0 -13%
                 
Napier              79,900 615,000 $23,920 25.7 22.9 23.5 26.1 -2%
                 
New Plymouth              80,700 521,000 $22,880 22.8 23.5 21.2 24.8 -8%
                 
Whanganui              44,500 405,000 $20,800 19.5 19.2 16.7 20.8 -7%
                 
Palmerston North              87,300 619,500 $23,920 25.9 24.6 21.5 25.9 0%
                 
Wellington metro            487,700 785,000 $28,154 27.9 27.9 25.1 27.9 0%
 - Kapiti Coast              52,700 772,000 $26,000 29.7 26.7 26.7 29.7 0%
 - Porirua              56,100 880,000 $30,680 28.7 24.8 27.1 29.4 -2%
 - Upper Hutt              43,200 $541,650 $30,160 18.0 18.3 17.9 22.5 -20%
 - Lower Hutt             104,700 761,000 $28,600 26.6 22.4 20.7 27.9 -5%
 - Wellington             212,700 876,000 $34,840 25.1 25.1 24.3 25.4 -1%
                 
Nelson              51,400 641,000 $24,960 25.7 27.5 23.0 27.5 -7%
                 
Christchurch City            381,500 526,000 $23,400 22.5 21.8 21.8 22.5 0%
                 
Timaru District             47,100 410,000 $19,760 20.7 20.0 19.0 22.0 -5%
                 
Dunedin             128,800 560,000 $24,960 22.4 26.0 21.6 26.0 -14%
                 
Queenstown-Lakes              37,100 1,010,000 $26,000 38.8 40.7 36.2 42.3 -8%
                 
Invercargill              54,800 369,000 $19,084 19.3 18.0 19.5 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

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Contact:

For sources, definitions, and methodology, please contact:

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www.interest.co.nz
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