News Next article
More demand than supply for New Zealand tenants
Rental Price Index September 202312 October 2023
There is currently greater demand for rental properties than what is available, according to Trade Me’s latest Rental Price Index.
The latest Trade Me data shows that although New Zealand’s median weekly rent has held steady at $620 since June, there are fewer rentals than people looking.
Listings onsite were down 16 per cent year-on-year in September, while enquiries were up 11 per cent.
“We have seen a drop in rental listings when compared with last year but an increase in demand, so I think we are very unlikely to see landlords drop prices anytime soon,” says Trade Me Property Sales Director Gavin Lloyd.
“This is creating a really tight market, and means tenants will have to reach further into their pockets in the immediate term if they’re looking to move,” says Mr Lloyd.
The biggest gap between supply and demand is in the Auckland region, with listings in September down 26 per cent, while enquiries are up 28 per cent.
Prices steady but significantly higher than 2022
“Renters will be feeling some comfort that the median rent has held steady at $620 per week nationwide since June this year.”
Those renting are still spending significantly more year-on-year, however, with the national median rent up $45 from $575 per week last September.
“$45 a week is a fairly significant increase in weekly expenses – adding up to $2,340 in a year,” says Mr Lloyd.
Northland is the region that has seen the biggest increase, up $75 a week or 14.9 per cent, lifting from $505 to $580 in the last 12 months.
Marlborough saw the second largest increase, up 14 per cent from $500 in September last year to $570 now. Auckland had the third largest - up 12 per cent since last year with a median weekly rent of $670.
Auckland continues to see record highs for rent
While rental prices are relatively stable across the nation, Auckland rental properties are still reaching record highs – with Auckland three to four bedroom rentals reached a new record median weekly rent of $770 in September.
Properties in Auckland city have been holding steady at $650 per week since April, which is appealing for those wanting to live closer to the city and save money on other expenses, like travel costs.
The North Shore is the most expensive Auckland district to rent with weekly median rent at $710, followed by Papakura at $700.
“Auckland prices are creating significant strain on renters in an environment where the cost of living is front of mind for many,” adds Mr Lloyd.
Despite remaining relatively steady, Trade Me data shows the rental prices for apartments, townhouses and units are all up in median weekly rent year-on-year.
Aucklanders are paying 11.8 per cent more to rent an apartment, 10 per cent more for a unit and 4.4 per cent more for a townhouse compared to the same time last year.