Data covers stock and flow measures of rental property prices
During the course of the year, we have seen property price changes that have made it more challenging for Kiwis to enter the property market or climb the property ladder, but those renting properties are also struggling – with the latest Statistics New Zealand (Stats NZ) data showing another increase in rental prices in November 2021.
In October 2021, Stats NZ’s Rental Price Index showed that the stock measure of rental property prices rose by 0.3% compared with September. By contrast, the flow measure of rental property prices fell by 1.1%. In November, the index found that the stock measure of rental property prices rose by 0.3% compared with October, and the flow measure of rental property prices rose by 1.1%.
The flow measure of rents covers rental price changes for houses with a new tenancy started in the reference month. Therefore, it is usually more volatile than the stock measure, which shows rental price changes across the whole rental population, including renters currently in tenancies.
Read more: Rental prices in New Zealand: Still affordable or now unattainable?
Regarding annual change, the October 2021 index found that the stock measure of rental property prices increased by 3.3% compared with October 2020, and the flow measure of rental property prices increased 5.8%.
Meanwhile, the November 2021 index revealed that the stock measure of rental property prices increased by 3.5% compared with last November, while the flow measure of rental property prices jumped by 5.9%.
Focusing on monthly change, the stock measure of rental property prices rose by 0.3% compared with September, but the flow measure of rental property prices fell by 1.1%. In November, the stock and flow measures of rental property prices increased slightly by 0.3% and 1.1%, respectively.
Demand for rental properties also changed near the end of 2021, with the Trade Me Property (Trade Me) Rental Price Index for October 2021 noting a 3% increase in demand for rentals compared to the same month last year.
In the Auckland region, demand was down by 4% year-on-year in October, while supply was down 4%. In Wellington, rental demand increased by 13% in October compared to the same month in 2020, while supply was down by 5%.
