Krsinich, Frances

Rental indexes and decomposed house price indexes from big(ger) data

Ministry of Business, Innovation and Employment, Wellington

MBIE and Stats NZ have recently collaborated to develop an improved rental index for the NZ Consumers Price Index directly from tenancy bond data. This requires new methods, which are gaining traction internationally for measuring inflation from big data such as scanner and online data.

MBIE are also using these methods to develop a house price index from CoreLogic sales and valuation data, which can be decomposed into land and structure components. In addition to an improved house price measure for New Zealand, this will enable land price measures and price-to-cost measures for the entire stock of residential property, able to be disaggregated down to the territorial authority level.