In the year leading up to June 2011, New Zealand saw an increase of the average weekly rent by 7.4%. Rent payments were also increased to 35% of all New Zealand households.
The data from Statistics New Zealand’s Household Economic Survey found that in the two years leading up to June 2011, those spending roughly a third of their income on housing increased from 19.5% to 21.8%. Those living in rental housing in New Zealand also saw an increase from 33.8% to 39.1%.
The survey discovered that rental accommodation saw an increase in rent by 7.4% in 2010/11 compared to average rental income in 2009/10. This is an increase following a trend seen in 2009/10 of a 6.6% rent increase to that of 2008/09.
There was 5% increase in households paying rent more than $300 a week, from 33% in 09/10 up to 38% of households in 10/11.
The survey also showed an increase in average household income by $2,575 from $76,584 in June 2010 to $79,159 in the year ended June 2011.
The trends seen in Statistics New Zealand’s survey can have some attribution to the growing property market in New Zealand. With high demand in rental properties across New Zealand, notably Auckland and Wellington who have experienced an increase in rental housing demand up to 30%. We can expect to see rent to go up in these major cities, where New Zealand property investors will take advantage of the growing demand and strengthening property market.