Rents Jump

As predicted rents are on the rise fueled by last years budget moves and a continuing shortage of housing stock.

Note that the average increase is 6% nationwide  so you can be quite sure that  rents have risen far more in the main centres, especially Auckland

This is only the beginning. Rents are set to rise far more over the next year or two and will become a political hot potato, of that I am sure.

Housing costs squeezing households

25/11/201

People are spending more of their income on rents and rates, with housing-related costs rising while average household incomes remain flat.

In the past two years, the proportion of household income spent on housing costs increased from 15.1 per cent in 2008/09 to 16.0 per cent in 2010/11 according to Statistics NZ figures.

Components of housing costs that increased between 2008/09 and 2010/11 were:

average weekly expenditure on rent, up 6.6 per cent, and

average weekly expenditure on property rates, up 9.3 per cent.

But average spending on mortgages and loans was relatively unchanged over the two years.

Over the same two-year period, average annual regular income for households changed little – from $78,019 in 2008/09 to $79,159 in 2010/11.

The proportion of households spending 30 per cent or more of their income on housing costs increased from 19.5 per cent in the year ended June 2009 to 21.8 per cent in the year ended June 2011.

These results come from the Household Economic Survey  of income, which is a shortened version of the three-yearly full Household Economic Survey

Link:

http://www.stuff.co.nz/business/money/6034457/Housing-costs-squeezing-households

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