Rising demand for rental properties across the country is making it tough for tenants and stock is struggling to keep
up, according to the latest Trade Me Rental Price Index.
Head of Trade Me Rentals Aaron Clancy said they’d seen a 20 per cent increase in the number of enquiries on rentals
nationwide in June while the national median rent remained at its all-time high of $500 per week for a third consecutive
month. “We’re seeing an increasing interest for rentals but stock simply isn’t keeping up with the number of properties
available for rent in June down 7 per cent on last year.”
“With rising house prices, some Kiwis are staying in the rental market longer than before to save for a house deposit.
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.”
“The regions which are experiencing the largest increases in demand are Bay of Plenty with the number of enquiries up a
“staggering” 47 per cent on last year. Enquiries in Southland had also jumped 45 per cent along with Manawatu/ Whanganui
which rose 33 per cent and Canterbury up 32 per cent.”
Mr Clancy said we often see a lag between an increase in demand and rising rents which means it’s likely that landlords
will lift rents if the demand continues to outstrip supply.
“With such high demand, rents have increased in many regions across New Zealand. 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.”
Mr Clancy said Southland saw the biggest annual rent increase, rising 15.4 per cent to a record $300 per week. Otago (up
13.9 per cent to $450), Nelson/Tasman (up 11.4 per cent to $440) and Waikato (up 10 per cent to $440) also reached
record median weekly rents in June.
Wellington rents rise $60 per week
“Renting in Wellington continues to get more expensive with the median weekly rent rising $60 per week on last year to
$540 in June.
“Taking a closer look at the region, Wellington City has the highest median weekly rent at $575 after climbing 15 per
cent on last year from $500. Rents in Porirua rose 3.8 per cent year-on-year to $545 per week along with Upper Hutt
which jumped 11 per cent to $500 per week. The median weekly rent in Lower Hutt was $495 in June, up 6.5 per cent on
last year.”
Mr Clancy said while demand for rentals in the region eased, up just 2 per cent on last year, the number of rental
properties onsite dipped 11 per cent. “With less stock on the market and rising rents, tenants in the capital are having
to dig deeper into their pockets.
“The little suburb of Waiwhetu in Lower Hutt had Wellington’s most popular rental in June. A property on Bell Road had
76 enquiries in the first two days onsite.”
Wellington’s most popular rental listings in Jun 2019Rental addressSuburbEnquiries in first 2 days1Bell RoadWaiwhetu762Randwick RdMoera603Rintoul StBerhampore58
Demand for Auckland rentals rise
“While the median weekly rent in Auckland has been flat since the start of the year, the number of enquiries on rental
properties in the Super City rose a solid 21 per cent on last June.”
Mr Clancy said with demand rising, we think tenants in Auckland could see some large rent rises on the horizon.
“Auckland had the most popular rental property in the country in June. A three-bedroom house for rent in Mount Eden had
99 enquiries in the first two days onsite.”
Mr Clancy said Auckland’s median weekly rent was $560 in June, up just 1.8 per cent on the year prior while the number
of properties available to rent in the region was down 2.7 per cent.
“The areas with the highest median weekly rents in June were North Shore City, Auckland City and Rodney.” North Shore
City’s median weekly hit $600 in June, up 3.4 per cent year-on-year. While Auckland City was $565, up 2.7 per cent and
Rodney up 2.8 per cent on last year to $555.
Auckland’s most popular rental listings in June 2019Rental addressSuburbEnquiries in first 2 days1Windmill RoadMount Eden992Surrey StreetManurewa913Mirrabooka AveBotany Downs73
Demand for houses soars 62 per cent
“When we look at demand by property type, houses have seen a huge increase in the number of enquiries, rising 62 per
cent on last year.
Mr Clancy said the median weekly rent across all house sizes increased year-on-year and rents for large houses (5+
bedrooms) saw the largest jump of 10.7 per cent year-on-year to $830.
“Rents for large houses (5+ bedrooms) in Wellington rose significantly in June, up 25.8 per cent on last year to $950
per week.
Apartments in hot demand
Mr Clancy said the median weekly rent increased across all urban property types compared to June 2018 but apartments
were the hot favourite.
“Demand for apartments, townhouses and units increased in June. Units saw the largest jump with the number of enquiries
nationwide increasing 19 per cent in June. Apartments saw the number of enquiries jump 14 per cent while townhouses saw
a 6 per cent bump in enquiries.
“The largest rent increase for urban properties was apartments in Wellington which rose almost 10 per cent to $515 in
June.
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