Why New Zealand renters may soon have it better than Australians

According to a comparative report by CoreLogic and Statistics New Zealand cited by RNZ Business, the average median weekly rent in New Zealand has stayed flat over the past 12 months while in Australia it has risen 6.4 percent. Rent growth in Auckland, Wellington and Christchurch is below the historical average, while annual double-digit increases continue in Sydney and Melbourne.

On the migration side, Australia continues to absorb a net inflow of around 470,000 people a year, while in New Zealand positive net migration has eased to about 35,000, taking pressure off rental demand. The RBNZ's 50 basis point rate cuts over the past three months are stimulating new construction volumes, while the RBA's cautious stance is deepening the housing supply gap in Australia. New listings of rental properties in Wellington fell 1.2 percent, while in Sydney they rose 8 percent.

The report stresses that lower rent growth in New Zealand is lowering inflation faster and supporting household disposable income. Australian policymakers are discussing capital gains tax cuts and negative gearing reforms; whether the National Housing Accord's annual target of 240,000 new homes will be met remains uncertain. Analysts say the New Zealand renter may, in the short term, be heading into a more comfortable period.