Residential rents flatlined in the June quarter (Q2) of this year, but are up by an average of $30 a week compared to a year ago.
According to bond data from Tenancy Services, the national median rent was $600 a week in Q2 this year, unchanged from Q1.
But it was up by $30 a week (5.3%) compared to Q2 last year.
Those trends were also reflected in the national median rents for the main types of rental housing.
The median rent for three bedroom houses was unchanged between Q1 and Q2 this year at $650 a week, but was up $30 a week (4.8%) compared to Q2 last year.
Similarly, the median rent for two bedroom apartments/units was unchanged between Q1 and Q2 this year at $600 a week, and was up $25 a week (4.3%) compared to Q2 last year.
Median rents for one bedroom apartments/units were the most stable, increasing $10 a week to $460 (+2.2%) in Q2, after remaining flat on $450 a week for the previous four quarters.
Rental activity also appears to be relatively flat, with Tenancy Services receiving 34,788 bonds in Q2 this year, barely changed (-0.4%) compared to Q2 last year.
Of the 41 main urban districts for which interest.co.nz monitors rental trends, 20 recorded an increase in their median rent between Q1 and Q2 this year, 12 recorded no change and nine recorded declines. See the table below for the full district-by-district figures.
The Orakei Ward in Auckland (see the ward map below) is the most expensive district in the country to rent a home, with a median rent of $780 a week, just ahead of Queenstown-Lakes at $775.
It was a tie between Timaru and Invercargill for the cheapest place to rent, both having median rents of $450 a week.
Queenstown-lakes posted the biggest quarterly increase of $75 a week in Q2, while Dunedin posted the biggest quarterly decrease of $105.
However Dunedin's figures were not unexpected because the median rent in the city usually jumps sharply in Q1 each year as students return to the city and sort out their accommodation, much of which is larger properties that can accommodate numerous flatmates, and hence have reasonably high rents. This is usually followed by a big drop in rental activity in Q2.
On an annual basis, Dunedin's median rent was up by $35 a week in Q2.
In general, rent increases were relatively subdued in Auckland, with an overall annual increase of 4.8% in the region, while rents in the top half of the South Island, from Nelson to Selwyn posted double digit percentage increases for the year.
| Median Weekly Residential Rents | |||||
| All Dwelling Types | |||||
| Q2 2024 | |||||
| City/District | Median Rent | Quarterly Change | Annual Change | ||
| Q2 2024 | $ | % | $ | % | |
| Whangarei | $595 | $15 | 2.6% | $45 | 8.2% |
| Auckland Region | $660 | $10 | 1.5% | $30 | 4.8% |
| Rodney Ward | $650 | -$30 | -4.4% | $50 | 8.3% |
| Albany Ward | $750 | $35 | 4.9% | $50 | 7.1% |
| North Shore Ward | $700 | $0 | 0.0% | $30 | 4.5% |
| Waitakere Ward | $650 | $0 | 0.0% | $20 | 3.2% |
| Waitemata & Gulf Ward | $540 | $20 | 3.8% | $20 | 3.8% |
| Whau Ward | $650 | -$10 | -1.5% | $20 | 3.2% |
| Ailbert-Eden-Roskill Ward | $658 | -$17 | -2.5% | $8 | 1.2% |
| Orakei Ward | $780 | -$20 | -2.5% | $20 | 2.6% |
| Maungakiekie-Tamaki Ward | $650 | -$20 | -3.0% | $20 | 3.2% |
| Howick Ward | $740 | $10 | 1.4% | $40 | 5.7% |
| Manukau Ward | $650 | $15 | 2.4% | $70 | 12.1% |
| Manurewa-Papakura Ward | $690 | $15 | 2.2% | $40 | 6.2% |
| Franklin Ward | $660 | $10 | 1.5% | $30 | 4.8% |
| Hamilton | $550 | $0 | 0.0% | $10 | 1.9% |
| Tauranga | $695 | $0 | 0.0% | $45 | 6.9% |
| Whakatane | $565 | -$8 | -1.4% | $40 | 7.6% |
| Rotorua | $570 | $10 | 1.8% | $20 | 3.6% |
| Taupo | $618 | $68 | 12.4% | $98 | 18.8% |
| Napier | $650 | $30 | 4.8% | $65 | 11.1% |
| Hastings | $600 | $0 | 0.0% | $50 | 9.1% |
| New Plymouth | $600 | $20 | 3.4% | $50 | 9.1% |
| Whanganui | $490 | $0 | 0.0% | $20 | 4.3% |
| Palmerston North | $550 | $30 | 5.8% | $50 | 10.0% |
| Kapiti Coast | $620 | $0 | 0.0% | $40 | 6.9% |
| Porirua | $693 | $23 | 3.4% | $43 | 6.6% |
| Upper Hutt | $640 | $20 | 3.2% | $30 | 4.9% |
| Lower Hutt | $630 | $0 | 0.0% | $10 | 1.6% |
| Wellington City | $600 | -$50 | -7.7% | $10 | 1.7% |
| Masterton | $540 | $20 | 3.8% | $20 | 3.8% |
| Nelson | $550 | $0 | 0.0% | $50 | 10.0% |
| Marlborough | $550 | $0 | 0.0% | $50 | 10.0% |
| Waimakariri | $600 | $20 | 3.4% | $70 | 13.2% |
| Christchurch | $550 | $0 | 0.0% | $50 | 10.0% |
| Selwyn | $650 | $20 | 3.2% | $70 | 12.1% |
| Ashburton | $480 | $30 | 6.7% | $30 | 6.7% |
| Timaru | $450 | $0 | 0.0% | $20 | 4.7% |
| Queenstown-Lakes | $775 | $75 | 10.7% | $47 | 6.5% |
| Dunedin | $495 | -$105 | -17.5% | $35 | 7.6% |
| Invercargill | $450 | -$10 | -2.2% | $20 | 4.7% |
| All of Aotearoa | $600 | $0 | 0.0% | $30 | 5.3% |
| Source: Tenancy Services | |||||
Map of Auckland Council Wards
29 Comments
It's understandable there is a queue forming at the exit.
Landlords of the leveraged variety have worries too. Before expenses, yields should be on average in the vicinity of 8-10% not only to reflect the risk but compare side by side with less riskier TD's. What is it currently - 5%? Capital gain cannot be guaranteed when the timing of any future disposal is not. If there is clear intent to dispose for gain then isn't it more likely to be covered under the "intent" rule?
If there's a "surplus of empty rentals" then why are so many prospective tenants finding it so difficult to find something suitable? And why are rents climbing so much?
Perhaps the answers to such obvious questions lies in the reality that there's a chronic shortage of houses in NZ - and that the current slowdown in construction means the shortage might well grow in the future.
TTP
Or it means there's a chronic lack of Disposable Income, and prospective tenants are having to double-up or go back home to M&D.
There is no lack of housing in New Zealand - just an inequitable distribution of ownership. "Encourage" those who have 100 to sell to those who have none ("Sell now, before prices halve"; regulatory change of all kind is always a good starting point for that rebalancing), and the supposed 'lack of housing' myth, goes away.
YRM kindly inform us were this is and make certain it is more than just your neighborhood as we're I have my properties most I could rent out tomorrow if empty and not fussed on quality of tenant. On my newer builds am a bit more picky so take longer to rent. But no shortage of tenants.
As a landlord I feel disappointed and aghast that these scummy tenants think it is okay to reject our generous offers of sustainable rent increase. I don't think I will go ahead with the purchase of my student rentals in H2 2024 - silly students are biting the hand that feeds them.
-SMG.
Or that there's a glut of rentals on the market and people are dropping their rents to attract new tenants.
A few anecdotes on the NZ Property Facebook group over the last couple of weeks, of investors struggling to find tenants and their asking rent has been appraised at the lower end.
"That was meant to be sarcasm, but on reflection, the fact that rents have not risen in the last quarter could mean that a rise in rents was averted...."
What tenants will pay relates primarily to what tenants earn. (Studies have shown this to be true.)
With the economy crumbling, and wage increases drying up, and wage earning terrified of risking their current job by even suggesting a pay increase ... Are you suggesting a recession, with job losses and fear, is good for tenants?
Odd way to look at it.
Maybe within 20 years?
That's one interpretation of 'matter of time'.
If I wanted to be 100% right I'd say 30 years.
In any event $1,000 per week is only half the equation. The other half what it costs to provide it.
(I'm having a whimsical moment. I usually ignore such drivel.)
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