Rents Increase $10 A Week But Supply Up Significantly In January

The national median weekly rent increased by $10 per week in January compared to the month prior, but the supply of rental listings is also up significantly, according to data from Trade Me Property’s latest Rental Price Index.

This could indicate future downward pressure on prices as more properties are available and renters have more choice, says Trade Me Property Customer Director Gavin Lloyd.

The number of rental listings on Trade Me Property in January was up 13 per cent nationally compared with December, and 40 per cent year-on-year. The majority of new listings concentrated in Auckland (11,107, up 13% month-on-month), Wellington (4,030, up 22% month-on-month), and Canterbury (2,591, up five per cent month-on-month).

Gavin Lloyd says this additional choice presents a more competitive landscape for landlords.

"With so many rental options available, securing a long-term tenant could be more challenging than in recent times. Affordability is a key concern from tenants who are looking at price along with location and proximity to amenities as key decision points.

“Attractive, well-presented and maintained rental properties will always be popular, and landlords with properties that have been vacant for a while might need to consider making their property more competitive, either by adding improvements or reducing the price.”

Rents in the regions

Taranaki saw the largest month-on-month increase in price, with a six per cent rise to $620 per week. Wellington followed with a 3.8% increase to $675 per week, now surpassing Aucklands median weekly rent of $670. Canterbury showed a 2.7% month-on-month increase reaching $580.

After last month's reporting, the biggest drop in weekly median rent this month was in Otago. Last month's surge to $625, up 4.2%, has done a 180, dropping back down 4.0% to $600 this January. Year-on-year figures show that Otago continues to sit at the top of the chart as the region with the largest increase in rental prices up 7.1%.

Urban living blues

“For those living in apartments, townhouses and units, some may be feeling the sting in their wallets this month,” says Gavin Lloyd. “The national median weekly rent for units is at a record high this month, up four per cent month-on-month to $520 per week.

Excluding Auckland, townhouses across the country are up 3.3% to $620, and units up 6.7% to $480. Auckland went against the grain, with rents for townhouse properties down 4.1 per cent month-on-month to $700 a week.

Apartments remain more steady, with no changes in Auckland, but Christchurch sees a lift of 2.0% to $510 and Wellington a decrease of 0.8% to $590. 

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