​New approach for rent measurement a world first

Apr 15, 2019 | News

The consumers price index (CPI) for the June 2019 quarter (to be released on 16 July) will be the first in the world to use administrative rent data in this way to construct the CPI.

The new method for measuring rent prices arose from a collaboration with Ministry of Business, Innovation and Employment (MBIE).

“Thanks to this work, landlords no longer have to fill in a Stats NZ survey every quarter,” consumer prices manager Gael Price said.

Instead, rents are measured directly from data that MBIE is already collecting.

MBIE holds tenancy bonds on behalf of landlords, which means the agency has information on actual rents charged for all tenancies. This is a much bigger source of data than the survey that was previously used to measure rental prices.

The new approach means Stats NZ can release rental price indexes (RPI) every month. This is because MBIE collects the data regularly as part of administering rental bonds. The RPI has been available monthly since the start of 2019.

Rent is the largest single item in the CPI, with a weight of 9 percent.

“The shift to a monthly rental price measure is useful for forecasters. They’ll be able to use the RPI to forecast the rent component of quarterly CPI inflation,” Ms Price said.

“We’re very pleased to be collaborating with MBIE on this. Without MBIE’s data, we wouldn’t be able to realise the benefits of the RPI – a higher quality, more frequent release that’s valuable for forecasting.”

Stats NZ ran the rental survey for the last time in the March 2019 quarter. Data from that survey will be used in the March 2019 quarter CPI (to be released on 17 April).

Rental bond data available on MBIE’s website has more information about the activity level in the housing rental market.

“The two data sources are measuring two different things,” Ms Price said. “On MBIE’s website you can see rental bond data, which tells you all about the new rentals taken out each month. That includes how many new rentals there were, what the rent was on each one, and a regional breakdown too.”

The Stats NZ RPI differ from MBIE data because RPI are designed to measure ‘pure price’ inflation, consistent with the concepts used for the CPI. This means controlling for changes in the quality of rental properties over time, such as size and location.

New methodology for rental prices in the CPI has more information.

Video

See Rental price indexes: March 2019 video.

Recent articles

Community Housing Aotearoa (CHA) Newsletter 2 May 2022

Community Housing Aotearoa (CHA) Newsletter 2 May 2022

Human Rights Commission releases troubling indicators on habitability, COVID-19 RESPONSE, First funds released from council housing reserve, Seven-point plan released to tackle cost of living, Community Finance nominated for top industry award, In the News, Events,...

Community Housing Aotearoa (CHA) Newsletter 19 April 2022

Community Housing Aotearoa (CHA) Newsletter 19 April 2022

Haere rā to Brennan Rigby, Manager of Systems Shift, And the Supreme Business Excellence Award goes to…, CHA and Community Finance highlighted as leading housing systems change, Changes to the Healthy Homes Standards finalised, Practical Actions on Climate Change,...

Annual Report

CHA’s 2020/21 Annual Report

CHA’s 2020/21 Annual Report

Strategic Plan

CHA’s Strategic Plan 2018

CHA’s Strategic Plan 2018

Featured Network

Residential Tenancies Act Community of Practice

Residential Tenancies Act Community of Practice

Our Place

Our Place Report 2017

Our Place Report 2017

Case Studies

Media Releases

News

Anti-Social Behaviour notes Nov 21

Tenants Protection Association (Chch) Inc. Notes for presentation at Tenancy Management Community of Practice Nov 2021 Anti-Social Behaviour notes Nov 21

Tenancy Management COP November 2021 summary

tenancy-management-cop-november-2021-summary The final Tenancy Management Community of Practice for 2021 was held via zoom on 11th November 2021. This Community of Practice is relevant for advocates, practitioners, navigators and tenancy managers involved in...

Newsletters

Community Housing Aotearoa (CHA) Newsletter 2 May 2022

Human Rights Commission releases troubling indicators on habitability, COVID-19 RESPONSE, First funds released from council housing reserve, Seven-point plan released to tackle cost of living, Community Finance nominated for top industry award, In the News, Events,...

Community Housing Aotearoa (CHA) Newsletter 19 April 2022

Haere rā to Brennan Rigby, Manager of Systems Shift, And the Supreme Business Excellence Award goes to…, CHA and Community Finance highlighted as leading housing systems change, Changes to the Healthy Homes Standards finalised, Practical Actions on Climate Change,...

Community Housing Aotearoa (CHA) Newsletter 4 April 2022

Welcome to Justin Latif, CHA's new Communications Lead, COVID-19 Response, Ministry for the Environment releases draft National Medium Density Design Guide, Fair Pay Agreement Bill update, Update on the Incorporated Societies Bill, In The News, Events, Community...

Community Housing Aotearoa (CHA) Newsletter 21 March 2022

COVID-19 RESPONSE, From bank overdraft debt repayment plan and into a 'rent-to-own' place of their own, Homelessness Action Plan 18 Month Review, In the News, EVENTS, Sector Call online zoom on Property Management Regulations, Property Council New Zealand -...

Submissions

Legislation

Reports

Research

Community Housing Aotearoa

Contact Us

Contact Info

Level 11, Ranchhod Tower,
39 The Terrace /
102-112 Lambton Quay
PO Box 11543
Wellington 6142

+04 385 8722

support@communityhousing.org.nz

Follow On