Regions Rental Listings Compared

Rental inventory best viewed as a percentage of total rentals, i.e. advertised vacant supply as a percentage of total demand. International studies suggest 3% is the balance point where more than that and supply exceeds demand or vice versa. But in New Zealand we have a big player with 60,000 houses that are never advertised - MBIE. This means that balance is a bit lower than other countries, I recommend from watching this data for the last 8 years that a figure of about 2.5% is balanced, i.e. when Auckland dropped to 2.2% in 2014 we heard about queues for rentals, that has gone now that the level is almost back to 2.5%.

So that leaves Wellington, Tauranga and Hamilton in severe shortages, as they fall close to 1.5% reaching Christchurch post earthquake period inventory levels. News reports about Wellington shortage are swamped by lazy reporting and click-bait stories about the Auckland housing “situation”, but they are coming in more often now.

Christchurch has returned to a stable level of 3%, the same as ALL cities pre-earthquake. That may stabilise prices there.

There is no shortage of rentals in Auckland, only a shortage of income to pay for the rents of MBIE houses if they can get them!

Wellington, Tauranga & Hamilton have a shortage of homes, fullstop.

To help understand the previous chart, here is the same chart with actual numbers of rental listings (inventory)

Jonette 2011