PHOTO: The national median rent has increased by $45, rising from $575 per week in the previous September.
According to the latest Rental Price Index from Trade Me, there is currently a higher demand for rental properties than the available supply. The most recent data from Trade Me indicates that New Zealand’s median weekly rent has remained constant at $620 since June. However, there are fewer rental listings compared to the number of people seeking rentals.
NZ’s #1 Property News E-Newsletter | Wednesday 11 October 2023
In September, rental listings on the Trade Me website were down by 16% compared to the previous year, while inquiries from potential tenants increased by 11%. Trade Me Property Sales Director Gavin Lloyd stated that the decrease in rental listings and the rise in demand suggest that landlords are unlikely to reduce their rental prices in the near future. This situation has led to a highly competitive market, requiring tenants to allocate more of their budget for housing in the short term if they plan to move.
The most significant gap between supply and demand is observed in the Auckland region, with rental listings in September decreasing by 26% year-on-year, while inquiries increased by 28%.
While the median rent has remained stable at $620 per week nationwide since June, renters are still experiencing a notable increase in expenses compared to the previous year. The national median rent has increased by $45, rising from $575 per week in the previous September, which amounts to an additional annual cost of $2,340 for renters.
The Northland region experienced the most substantial increase in rent, with a weekly increase of $75 or 14.9%, going from $505 to $580 in the last 12 months. Marlborough saw the second-largest increase, rising by 14% from $500 in September of the previous year to $570. Auckland had the third-largest increase, with a 12% rise in median weekly rent, reaching $670.
In contrast to the stability in rental prices nationwide, rental properties in Auckland continue to reach record highs. Three to four bedroom rentals in Auckland reached a new record median weekly rent of $770 in September. Properties in Auckland city have maintained a weekly rent of $650 since April, which is attractive for those seeking to live closer to the city and save on expenses such as travel costs. The North Shore is the most expensive Auckland district for renting, with a weekly median rent of $710, followed by Papakura at $700. These high rental prices in Auckland are putting significant strain on renters, especially in an environment where the cost of living is a top concern.
Despite the overall stability in rental prices, Trade Me data reveals that the median weekly rents for apartments, townhouses, and units have all increased year-on-year. Aucklanders are paying 11.8% more to rent an apartment, 10% more for a unit, and 4.4% more for a townhouse compared to the same period in the previous year.