Northland Only Region To Record Increase In Rents As Pet-friendly Properties Surge Nationwide

Northland was the only region in New Zealand to see a year-on-year increase in median weekly rent in February, the outlier in a market that is otherwise cooling nationwide.

According to the latest Trade Me Property Rental Price Index, the national median weekly rent was $620 in February. While this held steady from January, it marks a 3.1 per cent decrease compared to the same time last year.

"While most of the country is seeing rents stagnate or even fall annually, the market in Northland is showing unique resilience," says Trade Me Property spokesperson, Casey Wylde. "This indicates persistent demand in the region that is bucking the wider national trend."

Elsewhere, the Bay of Plenty has overtaken Auckland by $10 to become the most expensive region for tenants, with the median weekly rent hitting $660.

Students flock to secure flats ahead

As the academic year kicks off, the rental market in key university cities is proving challenging for students, with intense demand and tight supply characterising most main centres.

"In our main student hubs, we're seeing some fierce competition," says Ms. Wylde. "The squeeze on students was felt in Palmerston North, which was the only university city to see a rent increase. Prices there climbed 1.8 per cent, fuelled by a 21 per cent jump in demand and a 14 per cent drop in supply."

Ms Wylde said other major centres are also feeling the pressure. "Auckland and Christchurch City are telling a similar story of intense competition. Both saw a 15 per cent spike in demand for a shrinking pool of properties. While Christchurch prices have held firm for now, the pressure is certainly on. It’s a similar situation for scarfies in Dunedin, where a 14 per cent surge in demand is competing for an 8 per cent smaller pool of available flats."

Pet-friendly rentals surge following law change

The rental market has seen a dramatic increase in the number of properties allowing pets following new legislation that came into effect in December last year. The proportion of rental listings on Trade Me marked as 'pets negotiable' has skyrocketed.

The impact of the new tenancy laws has been both immediate and significant for pet owners," says Ms. Wylde. "In February, a record-breaking 39 per cent of new rental listings that specified a pet policy were listed as 'pets negotiable,’ a massive jump from just 13 per cent in November before the law change. This is the highest proportion we have ever seen and will be a huge relief for tenants who have struggled to find a home that accepts their furry family members."

While the number of listings explicitly saying 'no pets' dropped from 52 per cent in November to just 29 per cent in February, the number of landlords who proactively list their property as 'pets okay' has declined from 18 per cent to 9 per cent in the same period.

"It's clear landlords are adapting to the new rules, creating a much more welcoming environment for tenants with pets," says Ms. Wylde. "For renters hoping to turn that ‘maybe’ into a ‘yes’, we'd recommend creating a pet resume or cover letter for their furry friend. Including references and offering a pet bond can go a long way in giving a landlord peace of mind."

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