Median weekly rent across New Zealand sits at $600 for the third month in a row
Tenants will have to dig deep for another month, unless they’re in Southland, where rent was the same as last year.
The Trade Me Rental Price Index for April showed record median weekly rent across New Zealand continued to sit at $600 for the third consecutive month, a 3% rise from April 2022’s $580.
“We saw steep rises in places like Manawatū/Whanganui, where tenants were being asked to pay an extra $50 a week, increasing to $530,” said Gavin Lloyd (pictured above), Trade Me Property sales director. “And it was almost the same in Canterbury with an extra $45 to $540.”
In fact, all regions except Southland saw a year-on-year increase from April 2022.
“Southland is obviously the place to be. Its median weekly rent is the cheapest in Aotearoa at $430, a massive $100 less than Manawatū/Whanganui, the next most affordable region,” Lloyd said.
“There are many factors why Southland’s median price isn’t rising, including it being one of the most affordable markets to buy in – it’s about $400,000 for a first home, meaning there aren’t the same pressures on the rental market.”
Demand on the rise
April’s rental stock across the motu fell 19% from 2022, while demand rose 36%.
“So, what does that mean? Typically, that means there is greater demand for rental places, which could result in a higher price as more people compete for the same places,” Lloyd said.
Auckland listings plunged by 36% from last year, adding pressure to a tight market; while the Waikato, another one of our larger rental markets, also saw supply slide by 13%.
“The Manawatū/Whanganui well and truly bucked the trend – it had an increase of supply by 52%, but a decrease of demand by 11%,” Lloyd said.
Other regions that saw a decent year-on-year increase in rental stock included Northland (41%) and Taranaki (22%). Taranaki’s demand also surged by 45%.
Hawke’s Bay on the spotlight
Lloyd said Hawke’s Bay’s housing situation has been in the public consciousness since Cyclone Gabrielle devastated the region.
The median rental price at Hawke’s Bay for April was at $590, down from $625 in March, but still a $40 increase from April 2022.
“Hawke’s Bay increased its rental stock by 1%, going against the grain,” Lloyd said. “This could be for a number of reasons, including anecdotally we heard some people were shifting their short-term rentals to long-term to help ease the pressure in the community. Demand in the Bay also dropped by 2%.
“Gisborne is now our smallest market for stock, falling 42% year-on-year. Demand dipped by a similar number of 47%.”
We’ve got that urban feeling
Urban properties, including apartments, townhouses, and units, had seen the largest percentage rises for rental properties in New Zealand, lifting 8% year-on-year.
“Our urban properties reached an all-time high median weekly rent of $540, which is an extra $40 a week to come out of tenants’ pockets,” Lloyd said. “Kiwi have fallen in love with the urban property. Across both the for sale and rental markets, we’re seeing strong interest in apartments, townhouses, and units.”
Cities with record urban median rental prices
In Auckland, tenants are now being asked to pay $575 per week, a 10% jump from $525, while Christchurch tenants are being asked to dig into their wallets for an additional $45, as rents increased by 10% to $495.
The only property type across the country to fall in median asking price from April 2022 were the five-plus bedroom houses, which saw a minor 0.5% dip, Trade Me Property data showed.
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