New Zealand rents reached new heights last month, with the national median weekly rent growing to a record-breaking $580, according to Trade Me’s latest April Rental Price Index.
Trade Me Property Sales Director Gavin Lloyd said last month’s national median weekly rent grew by 7 per cent when compared with April 2021. "With New Zealand's national rent edging closer to $600 per week, the rising cost of food and fuel, many Kiwi households will be finding it tough.
“April was the second month in a row where we have seen rents jump by 7 per cent year-on-year and means tenants are now paying $40 a week more than they were this time last year.”
Following the nation's lead, My Lloyd said all-time high median weekly rents were also seen in the Southland ($420), Northland ($550), and Canterbury ($495) regions in April. "The largest year-on-year price increase was seen in Taranaki, with the region’s median weekly rent growing by a whopping 19 per cent in 12 months.”
Mr Lloyd said rents in the Taranaki region have seen immense growth over the past few months, which he puts down to supply and demand. “Last month the number of rentals in the Taranaki region dropped by 32 per cent year-on-year, which really put pressure on the market, and is making it tough for prospective renters who are now facing fewer options and higher prices.”
Rental supply and demand dwindles
Nationwide, Mr Lloyd said the number of rental properties available in April dropped by 1 per cent when compared with the same month last year, while demand dropped by 8 per cent year-on-year. “If we continue to see market activity slow down, we may also see some price relief too.”
However, Mr Lloyd said slowing supply was not the case in every region last month, with some spots seeing an increase in vacant rentals. “The main centres saw by far the largest supply jumps last month, with the number of rentals available in the Wellington region skyrocketing by 26 per cent year-on-year, followed by rentals in the Auckland region increasing by 5 per cent.”
Looking at demand around the country, Mr Lloyd said in the Marlborough region, the number of enquiries on rentals jumped by 21 per cent year-on-year. “Canterbury was not far behind with a 19 per cent increase.”
When compared with the month prior, Mr Lloyd said the number of rental listings saw a slight drop in April. “Month-on-month, the number of rentals available onsite dropped by 5 per cent, while demand for rentals dropped by 19 per cent.”
Auckland rents sitting at $600
The Auckland region’s median weekly rent was $600 in April, increasing by 2 per cent year-on-year. “However, when compared with the month prior, this marked a slight drop of $10 per week.”
Mr Lloyd said the most expensive Auckland districts in April were North Shore City ($660), Rodney ($630), and Papakura ($650).
In April demand in the Auckland region was down by 14 per cent year-on-year, while supply increased by 5 per cent.
“The most popular rental listing in the Auckland region last month was a four-bedroom house on Colwill Road in Massey.” Mr Lloyd said the property had a weekly rent of $650 and received 3,125 views in its first seven days onsite.
Wellington rents grow 7 per cent in 12 months
In the Wellington region, the median weekly rent rose 5 per cent year-on-year to reach $625 in April. “When compared with the month prior, this marked a drop of 2 per cent for the region.”
The highest median weekly rent in the region was seen in Porirua ($695), followed by Wellington City, ($620) and Lower Hutt ($645).
Mr Lloyd said supply in the region increased by 26 per cent in April, while demand dropped by 4 per cent.
“Last month's most popular listing in the Wellington region was a three-bedroom house on Mahana Road in Paraparaumu. The $450-a-week property received 2,959 enquiries in its first seven days onsite.”
Large property rents reach a new high
Mr Lloyd said the median weekly rent for rental properties of all sizes saw an increase last month when compared with April 2021. “Nationwide, the median weekly rent for large properties (5+ bedrooms) reached a milestone in April, at a new high of $990 after increasing by 13 per cent year-on-year.”
