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 Jan-21 Dec-20 Jan-20 Peak % Fall
                 
New Zealand         5,001,000 730,000 $24,440 29.9 29.8 26.2 30.5 -2%
                 
Whangarei District             89,700 942,000 $25,740 36.6 38.9 35.9 44.6 -18%
                 
Auckland metro         1,486,000 1,000,000 $29,391 34.0 34.7 31.2 34.9 -3%
 - North Shore            225,800 1,255,000 $32,240 38.9 37.8 34.7 38.9 0%
 - Waitakeres             204,500 942,000 $29,640 31.8 32.1 29.0 32.1 -1%
 - Auckland City            444,100 1,105,000 $35,100 31.5 35.4 27.4 35.4 -11%
 - Manukau             368,500 935,000 $31,200 30.0 29.6 29.5 32.9 -9%
                 
Hamilton             165,400 695,000 $26,000 26.7 28.1 24.8 28.1 -5%
                 
Tauranga             131,500 854,000 $29,120 29.3 29.4 27.0 29.4 0%
                 
Rotorua              71,700 600,000 $26,000 23.1 21.6 20.9 23.8 -3%
                 
Gisborne              48,500 470,000 $21,840 21.5 27.7 20.2 27.7 -22%
                 
Hastings              62,000 770,000 $25,740 29.9 26.6 22.8 29.9 0%
                 
Napier              79,900 557,000 $24,960 22.3 28.1 24.5 29.5 -24%
                 
New Plymouth              80,700 600,000 $23,400 25.6 25.4 20.5 25.6 0%
                 
Whanganui              44,500 485,000 $20,800 23.3 19.7 18.1 23.3 0%
                 
Palmerston North              87,300 650,000 $24,544 26.5 25.9 23.6 26.5 0%
                 
Wellington metro            487,700 792,000 $28,711 27.6 28.0 23.4 28.1 -2%
 - Kapiti Coast              52,700 860,000 $28,080 30.6 27.9 24.0 30.6 0%
 - Porirua              56,100 730,000 $28,600 25.5 28.9 28.2 29.4 -13%
 - Upper Hutt              43,200 $549,150 $30,160 18.2 18.3 19.2 22.5 -19%
 - Lower Hutt             104,700 800,000 $29,640 27.0 27.1 21.8 27.9 -3%
 - Wellington             212,700 885,000 $36,400 24.3 26.8 21.7 28.1 -14%
                 
Nelson              51,400 712,500 $25,480 28.0 28.5 23.4 28.5 -2%
                 
Christchurch City            381,500 520,000 $23,400 22.2 23.5 20.5 23.5 -5%
                 
Timaru District             47,100 426,000 $19,240 22.1 20.9 18.9 22.1 0%
                 
Dunedin             128,800 618,000 $24,440 25.3 24.9 24.5 26.0 -3%
                 
Queenstown-Lakes              37,100 975,000 $26,000 37.5 41.0 40.6 42.3 -11%
                 
Invercargill              54,800 385,000 $19,760 19.5 19.8 19.0 21.6 -10%

 

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/terms-conditions 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
Auckland, New Zealand

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