Wellington Rents, the real story

Wellington rents continue to be well below those of Auckland;

January 2019:

  • Wellington $457 pw (despite the seasonal high)
  • Auckland $525 pw - Auckland is not seasonal

Rents as a Proportion of Household incomes

Auckland rents however, are being held back relative to incomes due to oversupply. Wellington Rent/HH Income has a long way to go to catch up with the peak in 2010, but have started to rise after a 5 year period of relatively stagnant rental prices, now that there is a severe shortage of rental housing. (for 2019 income, I have estimated to include the increased Accomodation Supplement - it has the same value in 2019for both Auckland and Wellington, but actual rents are much higher in Auckland)

The long term severe shortage of properties in Tauranga is showing with rents a point above the long term trend of about 23% of household incomes, having recovered from 26% in 2017.

Note, recent publicity about rent prices in Wellington exceeding Auckland is simply fake. The survey was from advertised vacancies, not actual rents. Auckland’s surplus means that lower priced dwellings are included, but a shortage in Wellington means most lower priced dwellings are taken off the market quickly or are advertised on Facebook during January (seen last year), hence inflating the average price of advertised properties. MBIE publishes actual bond prices on a monthly basis, so this data is based on the actual prices agreed by tenants and landlords, with some adjustments if some higher or lower suburbs have more or fewer recently rented properties.

Jonette 2011