KEY POINTS:
A significant number of would-be vendors have taken their houses off the market and chosen to rent them out instead, a study of rental property shows.
"The 50 per cent fall in the number of houses sold compared to 2007 was reinforcing renting as the better option," said Professor Bob Hargreaves of Massey University's Real Estate Analysis Unit.
Somewhat surprisingly, latest research shows the the median rent level has dipped $5 a week to $295.
The record high reached for rents at the start of the year was $300 a week.
Prof Hargreaves said the 1.6 per cent drop was somewhat unexpected because rents had been rising steadily last year and during the first months of this year.
However, on an annual basis, rents were still 5.36 per cent higher than in May last year.
"As house prices decline, renting may be a more attractive option for some households than buying. However, in the longer term, history shows buying is normally the most attractive option, particularly when the period of ownership is over five years."
Wellington was doing better than Auckland on the apartment front, with a median weekly rent for three-bedroom apartments at $600, compared with $435 in Auckland, possibly because of areas of oversupply there.
The median rent between the two cities was $288 per week in Wellington and $280 in Auckland.
- NZHERALD STAFF, NZPA
