Rents Start Off The Year At An All Time High

Rents started off the year with a bang, with the national median rent climbing 6 per cent in twelve months to reach a record-breaking $570 in January, according to Trade Me’s latest Rental Price Index.

Trade Me Property Sales Director Gavin Lloyd said despite the new record, January’s annual percentage increase showed a downturn when compared with previous months. “After the median weekly rent increased by a whopping 8 per cent year-on-year for three months in a row, last month’s 6 per cent increase actually marks a small drop in the rate of growth we were seeing at the end of 2021.”

Mr Lloyd said following the national trend, all time high rents were seen in a number of regions last month. “Auckland ($610), Hawke’s Bay ($570), Marlborough ($500), Nelson/Tasman ($550), Southland ($400), Waikato ($510) and Wellington ($650) all saw record high rents in January.

“If we look purely at year-on-year price growth, the biggest increases last month were seen in Hawkes Bay (up 14%), Southland (up 14%), and Taranaki (up 13%).”

When compared with the same month in 2021, Mr Lloyd said every region saw a drop in the number of rentals available In January. “We saw a year-on-year supply decrease of 12 per cent nationwide, with the largest drops seen in Nelson/Tasman (down 42%), Canterbury (down 33%), and Bay of Plenty (down 30%).”

Mr Lloyd said demand for rentals also dropped by 8 per cent year-on-year nationwide last month. “Taranaki (down 27%), Hawke's Bay (down 26%) and Nelson/Tasman (down 22%) saw the biggest drops when compared with the same month in 2021.

"On the other hand, Canterbury (up 26%), Manawatū/Whanganui (up 16%), Waikato (up 3%), and Otago (1%) were the only regions to buck the trend and see an annual increase in demand last month.”

Looking ahead, Mr Lloyd said demand would have to drop off even more before prices decelerated. “With the number of rentals available seeing a significant year-on-year decline in January, demand just did not slow down enough to have an impact on prices, especially considering we have now seen the market run so hot for such an extended period.”

Wellington rents have a record-breaking January

Following the wider region’s lead, Wellington City also saw a new all time high median weekly rent in January, increasing by 6 per cent on the same month in 2021 to reach $675. “This made it the most expensive district in the region, followed by Porirua ($655) and Kapiti Coast ($640).”

Wellington’s most expensive districts in January 2022 (*new high)

Demand for rentals in the Wellington region was down by 17 per cent last month when compared with the same month in 2021, while supply was down by 12 per cent.

“The most popular rental in the region last month was a two-bedroom unit on Hamilton Road, Haitaitai for $550 per week. The property received 136 enquiries in its first two days onsite.”

Auckland rents increase for the first time in three months

The Auckland region’s median weekly rent increased for the first time since September last month, up $10 on the $600 figure seen in October-December. “Looking closer at Auckland City, the median weekly rent in the district was $590, showing a 3 per cent year-on-year increase.”

Mr Lloyd said January's most expensive Auckland districts were North Shore City ($650), Rodney ($630), Manukau City ($620) and Papakura ($620).

Auckland’s most expensive districts in January 2022

Mr Lloyd said demand in the Auckland region was down by 15 per cent year-on-year in January, while supply was down by 3 per cent.

“Last month’s most popular Auckland rental was a four-bedroom house on Summer Street, in Ponsonby. It had a weekly rent of $1,100 and received 121 enquiries in its first two days onsite.”

Medium sized properties see largest rent increases

Mr Lloyd said medium properties (3-4 bedrooms) saw the largest national median rent growth in January, at $650. “This marked a year-on-year increase of 8 per cent.”

Record high rents for Wellington urban properties

Rents for urban properties reached an all-time high for the second month in a row in the Wellington region in January. ”The median weekly rent for urban properties (townhouses, apartments and units) in Wellington hit $590 last month, increasing by 9 per cent year-on-year.”

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