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Rents and Ownership by Region (Updated)

My friend atrentersblogasked if I could create a map of rental prices by region, that’s easy so here it is, however look further down for some more information that helps to see the comparison between regions as opportunties for both renters and landlords.


There are obvious differences between regions witha two to one difference between say Auckland and Manawatu-Whanganui. The chart is interactive so you can explore the results by clicking on each region.

So if rents are high or low in a region, what do sales prices look like:


And for renters this is the key chart if you are thinking of buying. Remember it is not the price you pay, but the interest you pay that counts


Of course it would not be complete without a yield calculation for Landlords. This is a simple rents divided by sales price, I have not included expected other costs such as maintenance and insurance as I have in the past, but they are also relative to interest cost, effectively adding 2-5% depending on your methodology. There appear to be no surprises here, comments welcome below.


There are suprises here - take a close look at Taranaki and Manawatu-Whanganui


After publishing this I got to thinking about the results and came up with a new way of viewing the data

This says stay away from Auckland, but review the posibility of investing in Taranaki or Manawatu-Whanganui.


Earthquake Compare

Excluding Auckland and Canterbury, NZ is short of properties for rent. This must be an opportunity for investors, and a problem for renters. The market will deliver, but building investment rentals in some cities is likely to pay at present.

After Earthquake we saw a lot of movement around the country as people relocated for multiple reasons. The massive rebuild in Christchurch was of course over-built and took time to recover. Immigration has not impacted Auckland as much as predicted, pointing to internal migration or Auckland building as the resolution. I bet on internal migration, but we will see in the census data shortly.

This chart shows the growth of inventory, so I would expect more homes being advertised overall and the net gain of Canterbury and Auckland of 10% seems about right, supported by this year’s steady state.

Note the boom in inventory during 2013-2014 was partly artificial due to Trademe offering property managers multiple listings in many poorly defined suburbs for the same price. They ceased that rort in 2014.

The shortage in the rest of the country is evident, now down 60% from 2011.


Jonette 2011