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