[CamB]

There are signs that something similar may be on the way to happening here in NZ.

I was really surprised today to see a paid advertisement in the local paper from a real estate firm which rents and sells. They published a (theoretically) rather boring list of suburbs with median rentals for 2004 and 2005 split by number of bedrooms.

It should have been boring, except that the data showed that rentals have mostly been essentially flat or gone down (a few areas excluded with moderate increases). There is some explanation in a change in the mix of housing (more cheap apartments being built), but the kicker is that in the same period house prices have gone up at least 15%, following approx a 20% increase from 03-04.

So.... rents are not only not increasing with house prices, but they may in fact be falling (despite wage improvements).

I can't understand why the firm would publish the info - it can't be helping their rental or real estate business. I was, quite simply, confused...