NZ's median weekly rents continue to smash records
Renters are paying $50 a week more on average compared to this period last year, with New Zealand’s median weekly rent up 9% on last year to reach a record $620 in June, according to Trade Me’s latest Rental Price Index.
“Fifty dollars extra a week adds up for tenants – that’s $2,600 more a year in rent,” said Gavin Lloyd (pictured above), Trade Me’s director of property sales.
“In this economy, costs are increasing across the board, and this is hitting renters hard. Landlords are still feeling confident to put up prices, but this might be reaching a peak as the confirmed recession, cost of living, and lack of disposable income hits tenants.”
Despite the annual increase, Lloyd noted an easing in rental prices in some regions.
“Over the coming months we expect many tenants will choose to stay where they are rather than look for a new rental, which should cause prices to drop or at least steady,” he said.
All regions posted an annual increase in June, with many delivering double-digit percentage growth, the largest of which was in Marlborough, where rents jumped a massive 15% to reach a record $580 per week.
In Auckland, median weekly rent surged 12% to a new high of $670. Canterbury remained steady at May’s record of $550, after an 11% annual rise. Northland and Hawke’s Bay, meanwhile, saw the smallest increases among the regions, with the median weekly rent at $600 and $570, respectively.
“If we look at the monthly trend across the motu, however, it appears rent growth in some regions is slowing,” Lloyd said.
Rents in Wellington, Canterbury, Hawke’s Bay, Manawatū/Whanganui, and Bay of Plenty remained unchanged when compared with May. Decreases have been posted, meanwhile, in Northland, Waikato, Taranaki and Nelson/Tasman.
“It’s good news for tenants that we’re seeing signs of the market cooling, however, time will tell if this trend continues beyond the typical winter slump,” Lloyd said.
The Trade Me report noted a continuing demand for apartments, townhouses, and units across all urban centres.
Apartments remained popular across the board in June, with rents for apartments in Auckland and Christchurch hitting new record highs of $575 and $500, respectively. Also in demand were townhouses, with rents for Auckland townhouses up 4% to an average of $710 per week.
“We are seeing a lot of demand in the major cities, with people choosing apartments and townhouses that are smaller, warmer and drier, but also close to the city, which may be helping people save transport and other costs,” Lloyd said.
The Trade Me report also showed that the number of properties available for rent declined by a significant 19% from the same period last year, while demand lifted to 35%.
The change, while seemingly much lower than the same period in 2022, showed supply and demand appeared to be settling when looking at the monthly trend. Nationwide supply fell 5% in May, and demand dropped 6%.
“We expect given the high rent prices, and the winter months, people are deciding to stay put rather than face the tough market,” Lloyd said.
Taranaki was the exception, which delivered an 8% uptick in listings as well as a 6% bump up in demand when compared with May, Trade Me data showed.
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