“Kiwis are staying in the rental market longer than before”
Prohibitive house prices have contributed to a 20% surge in enquiries for rentals in June, according to Trade Me’s latest Rental Price Index.
Head of Trade Me Rentals Aaron Clancy said that the national median rent remained at an all-time high of $500 per week for the third consecutive month. Supply is also an issue and isn’t keeping up with demand, as the number of rentals available decreased by 7% year-on-year in June.
Southland saw the biggest annual rent increase, rising by 15.4% to a record $300 per week. Wellington also climbed by 15%, with the median weekly rent rising by $60 per week on last year to $540. Meanwhile, the median weekly rent in Auckland has been flat since the start of the year, though enquiries tor rental properties rose by 21% on last June.
“With rising house prices, some Kiwis are staying in the rental market longer than before to save for a house deposit,” Clancy commented.
“Also, with growing rents some tenants are staying put rather than look for a new rental in this tighter market. Unfortunately for anyone looking for a rental property, this is a perfect storm and as a result we’re seeing record rents, increased competition for properties and less stock.”
When it comes to demand, the Bay of Plenty saw the biggest increase with a “staggering” rise of 47% in enquiries on last year. Southland follows close behind with a 45% increase, along with Manawatu/Whanganui and Canterbury – up by 33% and 32% respectively.
Clancy says rents will likely rise further, as there is normally a lag between an increase in demand and price hikes.
“With such high demand, rents have increased in many regions across New Zealand,” he stated. “In June, five regions saw strong double-digit growth and four reached new record rents. If demand continues like this we expect to see a lot more record rents over the coming months.”
