Source: Radio New Zealand
RNZ / Quin Tauetau
Rents have risen at a national level for the first time since November – but places such as Wellington are still recording drops.
Trade Me said the national median weekly rent advertised on its site dropped month-on-month in April by $5, to $625.
Rents rose 6.7 percent in Otago, 8.2 percent in Marlborough and 3.2 percent in Hawke’s Bay but were flat in Auckland and fell 3.2 percent in Wellington. Canterbury was up 1.8 percent.
Overall, the median asking rent is still $5 cheaper than the same time a year ago but Trade Me spokesperson Casey Wylde said there was increasing demand in some areas that was unmet by supply.
“Nationally, the number of rental properties available was down by 5 percent in April compared to last year, while demand was up 8 percent. This is creating a more competitive environment for tenants, and we expect this to put upward pressure on prices in the coming months.”
She said Bay of Plenty was the most expensive place to rent for the third month in a row, with a median weekly rent of $670.
Auckland was at $660 and Wellington at $600.
“Otago had the biggest jump with a $40 annual increase, taking its median rent to $640.
“The supply and demand dynamic explains a lot of this,” she said.
“In Taranaki, for example, a 30 percent increase in new listings has kept prices flat, with no growth compared to last year. On the flip side, an 8 percent drop in supply for Otago has pushed prices up, showing how sensitive regional markets are to the number of available homes – especially in these smaller regions.”
Auckland had an 11 percent increase in demand and a 5 percent drop in supply but rent was flat month-on-month and down $10 a week compared to last year.
“Wellington also saw a significant drop, with rents falling by $40 to $600 a week compared to last year.”
Renters in Gisborne are also seeing savings, with the median weekly rent dropping by roughly $55 compared to last year, landing at $630.
Wylde said: “While Gisborne has seen a temporary increase in listings which has provided relief for renters, the broader national trend points towards a tightening market. Where supply is constrained, landlords will have less need to lower their prices.”
She said there was a lot of demand for larger homes with at least five bedrooms.
“One of the biggest drivers we are seeing is the appetite for those quality family homes with just a little bit more space… we’re conscious that the cost of living is hard on Kiwi at the moment so it’s possible that we are seeing more interest in homes that allow for multi-generational or shared living spaces.”
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