Rental Listings Up 36 Per Cent Year-On-Year

New Zealand’s abundant supply of rental stock continues with listings up 36 per cent year-on-year according to Trade Me Property’s latest Rental Price Index.

Rental listings were up four per cent month-on-month and currently sit at the highest since 2019.

Trade Me Property’s Customer Director Gavin Lloyd suggests several reasons for the recent rise in listings.

“Possibly homeowners seeking additional income, an increase in Kiwi moving overseas, or maybe people are simply choosing to not leave the nest and live at home a while longer.

“As a result of the oversupply, landlords may need to soften price expectations to meet the current market which continues to favour tenants.”

Median Weekly Rent Holds Steady

In November the median weekly rent fell to $630, down $5 on October.

The region which saw the largest month-on-month increase was Nelson/Tasman, rising $20 (+3.5%) to $590.

The battle between Auckland and Bay of Plenty for the most expensive region to rent saw Bay of Plenty retain the top spot. The median weekly rent for Bay of Plenty sits at $675, and while this is a slight dip (-0.7%) on October, it continues its lead with Auckland sitting slightly behind at $670 per week.

Gavin Lloyd, commented, "I expect Bay of Plenty and Auckland to continue to pass the torch back and forth over the next few months. This is due to the similar number of rental properties both offer and fluctuating demand.”

Variance between the North and South

A month-on-month comparison of the North and South Island rental prices shows rental prices in the North Island are flat, with minimal change or decreases.

Many northern regions, including Waikato, Northland, Manawatu/Whanganui, and Wellington, experienced little to no change.

In the South it’s more of a mixed picture with a couple of lows, most notably with the median weekly rent in Otago at $600 (-7.7%) and Marlborough at $550 (-6.0%).

In comparison the Nelson/Tasman saw an increase to $590 (+3.5%) and Canterbury to $570 (+1.8%).

Smaller house, higher rent?

Rental properties with 1-2 bedrooms have seen a slight lift in rent prices this month. Christchurch leads the charge at $515 per week, a 7.3 per cent increase. Following behind is the Capital at $580 (+3.6%) and Auckland at $580 (1.8%).

When looking at larger properties, Auckland continues to offer enticing rent prices, down 8.7 per cent MoM for 5+ bedrooms and 3-4 bedrooms decreasing by 1.3 percent MoM.

In comparison, Wellington rental prices for properties with 3+ bedrooms have remained the same with no changes since October.

When it comes to apartments and townhouses Wellington has seen rent cuts with an overall drop of 2.5 per cent across the board this month.

Apartments are also down 4.3 per cent to $550 per week and townhouses down 3.6 per cent to $675. Units remain unchanged since October.

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