With Bay of Plenty leading the surge
New Zealand has seen a notable 25% increase in the national median weekly rent since the March 2020 lockdown, climbing from $510 to $640, according to Trade Me’s latest Rental Price Index.
“The pandemic disrupted the housing market significantly from the minute the first lockdown was announced,” said Gavin Lloyd (pictured), Trade Me Property’s customer director. “The ‘stay home, stay safe’ mandate led to increased demand in an already tight market, compounded by rising inflation and job losses, resulting in major fluctuations in rental prices.”
This presents tenants with ongoing challenges as rental costs consume a record-high portion of their incomes.
Wellington: The priciest main centre
Despite a slight month-on-month decrease of 1.5%, Wellington, which has experienced a significant downturn in its housing market, remains the most expensive main centre for renters, with a median weekly rent of $665, closely followed by Auckland at $660.
“A ‘perfect storm’ is brewing in Wellington’s rental market, fueled by population pressures, limited rental supply, and rising interest rates,” Lloyd said.
Bay of Plenty: The most expensive region
Surpassing even Wellington and Auckland, the Bay of Plenty has become the most expensive region to rent in, with the median weekly rent reaching $680, a 1.5% increase year-on-year.
The appeal of areas like Pāpāmoa is driving up costs.
“It’s a beautiful part of our motu so it’s no surprise Kiwi are wanting to live here,” Lloyd said.
Marlborough experiences significant rental growth
Marlborough is also seeing notable increases, with a 9.1% year-on-year jump in median weekly rent, now at $600. This spike contrasts with the stability in regions like Canterbury, where rents have remained steady at $580.
Fluctuations in larger property rents
This month’s Trade Me Property data highlighted significant shifts in rents for larger properties across major cities.
Auckland and Wellington have seen declines in rents for homes with five or more bedrooms, with drops of 6.1% and 8.7% respectively.
Conversely, Christchurch witnessed a substantial 15.6% increase, pushing the median weekly rent for large homes to $1,040.
Urban rental adjustments
The urban rental landscape shows more moderate changes.
Townhouses in Auckland and Wellington experienced declines, while apartment rents in Christchurch slightly decreased.
Conversely, unit rents in Christchurch saw a modest increase of 4.4%, indicating a mixed picture across different housing types in urban areas, Trade Me Property reported.
