New Zealand Rents Climb $40 Per Week In One Year
New Zealand’s national median rent climbed $40 a week in 2021 to reach $560 in December, according to Trade Me’s latest Rental Price Index.
Trade Me Property Sales Director Gavin Lloyd said last month’s national median weekly rent showed an 8 per cent annual increase, with rents matching the all-time high figure first recorded in October. “This will be hard news for tenants to hear, as a weekly rental increase of $40 per week means tenants will have to fork out another $2,000 a year in rent.
“Seeing such sizable rent increases persistently throughout the last quarter of 2021 will be a tough pill to swallow for renters around the country, who will no doubt be hoping for a cooler rental market in 2022.
Mr Lloyd said taking a closer look at the country, four regions saw rents hit a new high. “When compared with December last year, the largest median weekly rent increases were seen in the Taranaki (up 16%) and Hawke’s Bay (up 15%) regions. Both regions saw median rents reach all-time highs of $520 and $565 per week respectively in December.
“Other regions to see record high median weekly rents last month were Marlborough ($490) and Wellington ($630).”
When compared with December last year, Mr Lloyd said national rental market supply dropped by 10 per cent last month. “Supply was down in every region except Southland last month, with the biggest drop seen in Nelson/Tasman (down 49%), Northland (down 32%), Marlborough, and Canterbury (both down 28%).
“Nationally, demand for rentals also dropped by 2 per cent year-on-year in December.” While a drop in demand was promising going into 2022, Mr Lloyd said this drop was not likely to be substantial enough to slow the market down, especially while supply continued to dip with it.
Porirua rents the most expensive in the country
“Porirua still holds the title as the most expensive district to rent in the country after the median weekly rent in Porirua hit a record high $700 in December. Lower Hutt ($615), Masterton ($540), and Upper Hutt ($630) also saw all-time high median weekly rents in December.”
Looking at Wellington City, Mr Lloyd said the district’s median weekly rent was $640 in December, just shy of its all-time high of $645 recorded in October.
Demand for rentals in the Wellington region was down by 4 per cent last month when compared with the same month in 2020, while supply was down by 5 per cent.
“The most popular rental in the country last month was a three-bedroom house on Wilson Street, Newtown for $700 per week. The property received 125 enquiries in its first two days onsite.”
Auckland rents stagnant at $600
The Auckland region’s median weekly rent was $600 for the third month in a row in December as rent growth slows in the Super City. “After reaching the $600 milestone for the first time in October, the region’s median rent remained there for the rest of 2021.”
Looking closer at Auckland City, the median weekly rent in the district was $580 in December, showing a 7 per cent year-on-year increase.
Mr Lloyd said the most expensive Auckland districts were Franklin ($640), North Shore City ($640), and Rodney ($630) last month.
Mr Lloyd said demand in the Auckland region was down by 9 per cent year-on-year in December, while supply was down by 3 per cent.
“Last month’s most popular Auckland rental was a three-bedroom house on Oakdale Road, in Mount Roskill. It had a weekly rent of $630 and received 76 enquiries in its first two days onsite.”
Large properties see record high rents
Mr Lloyd said large properties (5+ bedrooms) were the pick of the bunch last month and saw an all-time high national median rent at $950. “This marked a double-digit year-on-year increase of 12 per cent.”
Large properties in Auckland reached a new record at $1,000 per week after an 11 per cent annual increase, while in Wellington large properties matched the national increase of 12 per cent to $1,200.
Record high rents for Wellington urban properties
Rents for urban properties reached an all-time high in Wellington last month. ”The median weekly rent for urban properties (townhouses, apartments and units) in Wellington hit $560 in December, increasing by 8 per cent year-on-year.”