Renters are the winners in the housing boom


Tenants in Auckland have escaped much of the impact of the city's soaring house prices with rents increasing by less than the price of a cup of coffee in a year.

It is a tortoise versus a hare story when it comes to the average house price against weekly rent in the super city.

The average Auckland house price has soared $88,000 over the last 12 months, while the median weekly rent price has increase by a single dollar according to the latest Trade Me Property Rental Index.

The median weekly rent of $500 in August was still the most expensive in the country but had risen by just 19 percent over the past five years.

Over the same time house prices in Auckland, according to Trade Me's Sale Price Index, have jumped by 73 percent from just under $497,000 to almost $859,000.

"While landlords have seen the value of their properties increase markedly, it looks like it's been a challenge to leverage that via rental increases," said Trade Me's property head Nigel Jefferies.

Rents rose faster in 11 other regions in the year to August while Auckland rose by just 0.3 percent.

"Our largest city is seeing growth outstripped by the Bay of Plenty and Manawatu, with both regions seeing huge double-digit rental growth in the last year," Mr Jeffries said.

Median weekly rents outside Auckland have risen by $20 to $380 in the year with Bay of Plenty leading the way with 20 percent growth.

It is now $420 a week - the same as it is in Wellington

Manawatu comes in at second place, with weekly rental prices increasing by 17 percent.

"Excluding Auckland, the rental market across the country is very strong and tenants are forking out a lot more on average."

Three regions reported decreases in median weekly rent, Canterbury (-4.8 percent), West Coast (-12.5 percent) and Taranaki (-0.7 per cent).

Renters are the winners in the housing boom

(Trade Me)

Median Weekly Rents - August 2016 vs August 2015

NZ - $440 (up 4.8 percent)

NZ (excl Auckland) - $380 (up 5.6 percent)

Auckland - $500 (up 0.3 percent)

Welllington - $420 (up to 10.5 percent)

Christchurch - $400 (down 6.8 percent)