Relief For Tenants In Sight As Rents Hold Steady In April

The median national rental price in Aotearoa has remained unchanged, according to Trade Me's latest Rental Price Index.

The index shows that the national median rent in April was flat when compared with March, remaining at $650, representing the sixth time in the past year that rents have remained flat month to month.

Trade Me’s Property Sales Director Gavin Lloyd said that will more than likely be welcome news for tenants. "Looking at the past year, rents have been running hot, rising faster than inflation and wage growth unfortunately hasn't kept pace. For a few months now we've seen supply catching up with demand and it looks like we might now be starting to see those shifts," said Lloyd.

"That trend is continuing with an 8 per cent increase in supply and an 8 per cent decrease in demand from March to April. This is a positive sign for renters  and means we'll likely see more stable rents in the near to medium term," he added.

Lloyd said that this can be attributed to a change in market forces. "April marks the fourth consecutive month where supply has actually increased, and the third consecutive month where demand has fallen. It looks like the market is rebalancing," he said.

Mixed bag as many regions seeing rents dip
Across the motu, many regions saw prices dip slightly in April. Most notably, the median rent in Nelson/Tasman fell by 3.4 per cent when compared with March, to $570.

They weren't alone. Rents in Auckland, Northland, Hawkes Bay and Manwatū/Whanganui all fell by between 1.4 and 1.8 per cent from March to April, while Canterbury and Southland saw no change.

Meanwhile, Bay of Plenty, Waikato, Taranaki, Wellington and Otago saw small bumps ranging from 0.7 to 3.2 per cent during the same period. Mr Lloyd said that although it's not unusual to see prices stagnate or dip heading into the colder months, this demonstrates that demand is still outpacing supply in some regions.

"It is typical for demand to taper off heading into winter, but this year it does appear that supply still has some catching up to do in some regions which is why we're seeing a bit of inconsistency with rents across the motu," he said.

Bay of Plenty once again the most expensive region to rent

The Bay of Plenty is once again the most expensive region to rent in Aotearoa with the median weekly rent reaching $690.

This follows the region briefly overtaking Auckland in December 2023, however Tāmaki Makaurau once again became the priciest region in the new year.

The median rent in the Bay of Plenty was $690 in April, up 0.7 per cent compared with March, edging ever closer to breaking the $700 mark. Mr Lloyd said that this will be unsettling news for renters in the Bay.

"While we've certainly seen sharper rent hikes in the past, this comes at a time where rents are already at record highs, so no doubt many households will be worried about what this means for their back pocket," he said.

"It's particularly challenging in Tauranga, the median rent is now at a record $730 which is a significant chunk of money for a family on the average wage. That's the third priciest in the country, behind Auckland's North Shore at $740 and Queenstown Lakes and Wanaka at $950, " Lloyd added.

He said that there's a common element with these places that make them attractive. "With these kinds of areas, there are some pretty big draw cards. Larger properties, proximity to the water and other kinds of outdoor activities. But that space has the trade off that these areas tend to be quite low density meaning there just aren't enough places for people to live."

© Scoop Media