Today in History

Wellington rental inventories (listings or vacancies) decline has slowed to 1.6%, along with Hamilton(1.4%) and Tauranga(1.6%). Rents in these cities are under severe pressure in catchup mode - Rents in Wellington, Waikato and BoP are chasing the top of the range of rent/HH Income in the chart below. Rents have historically trended to a narrow range for rent/HH Income and these regions are now at the top of the range.

Meanwhile,Auckland inventory is about normal, i.e. almost 3% in the chart below, equal to Canterbury(Christchurch). So, Auckland and Canterbury as a result are below or at the bottom of their normal range of rent/HH Income.

Note the oversupply in Christchurch may be coming down - looking at rents, no surprise rents dropped so much recently.

Support for a 3% average vacancy rate comes from a Canadian survey here, where they now have a shortage of rentals with a 2.4% Vacancy Rate - compared to NZ's 2.3% Vacancy Rate above.

1995, Dunedin

Jonette 2011