City rents remain stagnant
Rents in all regions continue to skyrocket – driving the national median weekly rent up 2% year-on-year in February 2021, according to the latest Trade Me Rental Price Index.
The report showed that every region in New Zealand saw a year-on-year increase in median weekly rent in February, with the most significant increase seen in Manawatu/Whanganui (16%), Hawke’s Bay (15%), and Taranaki (13%).
“Many of our provinces experienced record-breaking rents in February, with Gisborne ($535), Hawke’s Bay ($530), Marlborough ($480), and Waikato ($485) all hitting new highs. Northland also had a standout month, with the median weekly rent hitting $500 for the first time,” said Trade Me Property sales director Gavin Lloyd.
Lloyd stated that rising interest for rentals in the regions was driving prices up. Demand for rental properties in Marlborough increased by 46%, Northland by 35%, and Manawatu/Whanganui by 17% compared to last year.
“The provinces are becoming increasingly popular for some tenants, and with more Kiwis able to work remotely since COVID, this is a trend that will likely continue for the foreseeable future,” Lloyd added.
Nationally, demand decreased by 3% compared with February last year, while supply increased by 6%, according to the report.
“This marks the second month in a row we have seen supply outweighing demand. If this continues, we may well see prices cool off as we head into winter, which will be welcome news for renters around the country,” Lloyd said.
The median weekly rent in the Auckland region hit $590 for the second month in a row in February, jumping by 4% compared to the same month last year. However, Auckland City’s median weekly rent recorded no change compared to February 2020, at $570.
Lloyd said it was the same story in the capital, with the wider region recording an increase while city rents remained stagnant.
“The Wellington region’s median weekly rent increased by 2% year-on-year to $580, while in Wellington City, it was flat compared to last year staying at $600,” he said.
“Despite this, Wellington City continues to be the region’s most expensive district. Tenants in Wellington city will be pleased to see the rents plateau a little – rent increases around the capital have been massive in the last 12 to 18 months.”
