Rent costs up again in most regions ahead of summer

"This competition is pushing rents up and keeping them high."
"This competition is pushing rents up and keeping them high." Photo credit: Getty

Prospective tenants looking to secure a property are being warned to prepare to pay more, with almost every region seeing a spike.

October saw median weekly rents rise by 4 percent compared to the same time last year, indicating demand is still outstripping supply.

Based on Trade Me Property Rental Index data, the median price of renting a property in Auckland and Wellington was up 2 percent compared to 2019, while the national median weekly rent was up 4 percent.

Trade Me property spokesperson Logan Mudge said there are simply not enough rental properties available.

"This competition is pushing rents up and keeping them high."

Manawatu/Whanganui saw the biggest increase in demand for a rental property, up 32 percent year-on-year followed by Canterbury (31 percent) and Bay of Plenty (30 percent).

What are renters paying?

Trade Me Property data from October shows the national median rental cost is $520 per week, an increase of $20 compared to the same time last year.

Apart from Gisborne and the West Coast, every region saw year-on-year rent increases in October.

"The national weekly rent equalled the all-time high we first saw in February this year and again in April," Mudge said. 

"It's been over $500 consistently since April 2019 and we wouldn’t be surprised to see it hit the $550 mark in the next six months."

City of Gisborne, New Zealand
Photo credit: Getty

Wellington v Auckland

"The median weekly rent in Wellington hit $560 in October, up 2 percent on last year and $10 more than September," Mudge explained.

"Wellington rents continue to surge - with every district in the region up year-on-year. 

"Interestingly Wellington City ($590) has jumped back ahead of Porirua ($575) as the most expensive district in the region after a massive September."

Auckland's median rent, meanwhile, is $570.

"Some of Auckland's districts are seeing strong price jumps with North Shore leading the pack at $620 (up 4 percent on last year) followed by Manukau City (up 6 percent) and Papakura (up 7 percent) which both are on $580," Mudge said.

One area of the region that did see a drop in rental prices was Auckland City - down 4 percent compared to last year at $550.

"With the number of rentals up 5 percent on last year compared to demand jumping 19 percent it looks likely that Aucklanders will see more rental increases in the coming months," Mudge said.