Quote:
Originally Posted by accord1999
Auckland having a 25% premium in median rent in 2016 might have just been because it had a housing market boom first. In 2010 the premium against Wellington was much smaller, about the same as it is now after Wellington also had a housing boom.
And rents didn't flat-lined, Auckland rents were about $480 in November 2016 and are now about $640, Auckland rental growth rate has been pretty consistent for more than a decade. The rest of the country having higher growth in rental and housing prices is probably just the "Toronto/Vancouver" effect as residents and investors look elsewhere because prices got too high in Auckland.
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Should have said flat in real terms (ie inflation adjusted).
Personally, I think a big increase in supply of something is likely to make the price of that something lower than it otherwise would be.