Number of Rentals Halve Nationwide
Kiwi tenants can expect stiff competition for rental properties as the number of properties to choose from has dropped
50 per cent in the past year, according to the latest Trade Me Property Rental Index.
Head of Trade Me Property Nigel Jeffries said demand for rental properties was strong in October with the average rental
receiving 28 per cent more enquiries within the first week of being listed than a year ago. “Properties are getting
snapped up fast as demand outstrips supply. A two-bedroom flat listed in Wellington recently received nine enquiries in
its first three hours onsite, and this is just the tip of the iceberg.
“While the national median weekly rent has remained unchanged for the 11th consecutive month at $450, this increasing
demand and shortage of supply looks set to put pressure on rents. At a national level, supply and demand have remained
relatively balanced over the last 12 months as more investment stock has come on the market. Now it appears that the
scales are tipping.
“If this trend continues, things are going to be very tough for a huge number of renters, particularly students, who
will be hunting flats in summer.”
Wellington tenants bearing the brunt
Mr Jeffries said Wellington was bearing the brunt of the rental shortage with 69 per cent less rental properties on the
market than last year. “Wellington appears to be worst hit by this rental pinch, which is worrying news for those
flat-hunting in the capital.”
Mr Jeffries said that while the median weekly rent in Wellington was unchanged for the eighth consecutive month at $450,
he expected “some large jumps” over the next few months.
January is typically the busiest month for the Wellington rental market as students return for the university year and
begin looking for accommodation, he said. “Last January the market was very tight and the 2018 edition looks like it
will be even more difficult.”
Available Auckland rentals drop 35 per cent
“The number of available rentals in the Super City dropped 35 per cent on last October and we are beginning to see the
effect on prices,” said Mr Jeffries.
The median weekly rent in Auckland increased to $525 in October, up 2.9 per cent on last year. “Rents in Auckland have
remained relatively steady for 2 years, holding around the $500-$530 mark, but if this shortage of rental properties
continues we can expect to see new record rental prices in the City of Sails.”
Christchurch mirrors national trend
“Christchurch city is mirroring the national trend with 59 per cent less rentals than last October. Unsurprisingly,
demand for rentals in the Garden City grew 4 per cent on last year as tenants struggle with a lack of properties to
choose from,” Mr Jeffries said.
He said Christchurch was yet to see any effect on prices, with the median rent down 1.3 per cent to $395 per week but it
was “only a matter of time”.
Rent rises in the regions
Mr Jeffries said rental prices in the regions were already moving, with the Hawke’s Bay, Nelson and Southland reaching
new record rents in October.
“The median weekly rent in the Hawke’s Bay jumped 10.6 per cent to a new high of $365 and will cost tenants an
additional $1,820 per year. Nelson also reached a new record median rent, rising 12.3 per cent to $410 per week. The
median weekly rent in Southland rose 6 per cent to $265,” he said.
Small houses still the favourite
Mr Jeffries said small houses (1-2 bedrooms) are still the hot favourite for tenants around the country and particularly
those in Wellington.
“Smaller homes are typically more manageable for tenants to maintain and with the national median rent at $375 per week,
smaller houses are cheaper than the average apartment or townhouse,” he said.
The national median weekly rent for large houses (5+ bedrooms) and medium houses (3-4 bedrooms) remains unchanged on
last month at $750 and $500 respectively.
ENDS
NOTES
•About the Trade Me Property Rental Price Index: This report provides a comprehensive monthly insight into the rental market covering price trends by type and size of
property across New Zealand. The index is produced from Trade Me Property data of properties that have been rented in
the month by property managers and private landlords. On average over 11,000 properties are rented each month and the
report provides a comprehensive insight into this part of the property market for tenants, landlords and investors. The
index is calculated using the median rent in the month, this being an accurate statistical assessment of the current rent being charged by landlords and property
managers.
•More info: For information about the differences between the Trade Me Property data and bond data collected by Tenancy Services,
please read this post by Dr Lucy Telfar-Barnard from the University of Otago:
•Regional data: If you are after information for a particular region, please email Millie Silvester via mediaenquiries@trademe.co.nz and we will see what we can unearth for you. We can also provide the graphs and tables.