There was absolutely no overall movement in residential rents last year, with the national median rent stuck on $600 a week for all four quarters of 2024.
That follows a steady rise in rents in 2023, when the national median increased from $565 to $580 a a week.
That flatlining of rents was evident for most property types, with the national median rent for one bedroom apartment/units stuck on $450 a week since the second quarter (Q2) of 2023. That's apart from Q2 2024 when it briefly increased to $460 before dropping back to $450 again the following quarter.
Rents for three bedroom houses were also flat, with their national median stuck on $650 a week for all four quarters of last year.
The only property type to show any significant movement at the national level were two bedroom units/apartments. They remained at $600 a week for the first two quarters of last year, then dropped to $590 in Q3 and fell again to $580 in Q1.
That may reflect anecdotal reports of a surplus of new two bedroom terraced housing coming on to the rental market in parts of the country.
The flat rents evident in the national figures were generally mirrored in the regional figures in most parts of the country, however there were a few exceptions.
On the Kapiti Coast the median rent peaked at $625 in Q3 then dropped back to $595 in Q4; in Porirua the median rent peaked at $693 in Q2 then dropped back over Q3 and Q4 to finish the year at $660. In Selwyn the median rent peaked at $650 in Q2 then declined over the second half of the year to $620 in Q4.
Areas showing some upward movement were Timaru, where the median rent hit a new peak of $473 in Q4, Invercargill where the median rent peaked at $480 in Q4, and Hamilton where the median rent rose steadily to a record $570 in Q4.
Within the Auckland region, the median rent has remained unchanged at $650 a week since Q3 2023, apart from Q2 last year when it briefly popped up to $660 before drooping back to $650 in Q3 and Q4.
Within the Auckland region rents appeared to be softening slightly in the Albany, North Shore, Waitakere and Manukau wards, while none of the Auckland wards showed any significant rises.
While landlords will no doubt be lamenting the general lack of rental growth in the market, tenants may take some comfort that for the time being at least, rents appear relatively stable.
Note: Interest.co,nz's rental data comes from rental bond data gathered by Tenancy Services when new bonds are lodged. As such it is a leading indicator of changes in the rental market. The Q4 bond data for 2024 was drawn from more than 35,000 rental bonds received by Tenancy Services from throughout the country.
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79 Comments
Rents static for well over a year with signs they are beginning to fall
Rates, insurance and other property holding costs increasing considerably
Rental and for sale stock levels at extremely high levels
Difficult to find tenants.
Net immigration levels have fallen off a cliff
House values falling, especially in real terms
Unemployment rates increasing
Interest rate cycle reductions nearing end
Inflation propping its head back up
No yield gain, no capital gain, increasing costs, increasing risk.
Who in their right mind would buy an investment property right now?
Lol. Sounds like a great time to buy if you can make the numbers work. A lot of bargains out there. I'm seeing a substantial number of properties with yields greater than holding costs. Pretty rare in the LTR market for a 100% leveraged play to be cashflow positive day one.
'Be greedy when others are fearful'
I would suggest however, you are looking very much in the rear view mirror here, and will be pleasantly surprised (or not, since you'll have missed the boat again) when economic activity is better this year.
I'd say the opposite as most of the above are things that are actively getting worse not better. The reality has not caught up with people and they are not fearful... yet.
No boats have been missed and no boats will be missed.
The only thing that can save the property market here is probably something geopolitical.
Oh look, more problems..
Premium: Four months, still no buyers - PwC trying to sell Du Val properties
I don't know who you're trying to convince? yourself possibly?
All good. I will cite the evidence in this article to my landlord! 😁
Suggest other tenants do the same. ✅ 👍🏻
TTP
Has you rent gone up in the last 12 months? My tenants' rent hasn't.
My rates and insurance have increased though.
Just be happy you’ve got good tenants in this market
Hell, they should be happy they have a surplus unit of shelter in their name to derive an income from. Some people don't own anything.
Whether it's making them any money or not depends on their acumen.
Key point there is "if you can make the numbers work."
The numbers don't work on a 100% leveraged play in 90% of nz. In the places where it does work, it's always worked. Only problem is you end up owning a meth lab..
Toye
Please dont shed a tear for property investors. A group I meet up with regularly for coffee are currently doing really well.
With the relaxed planning regulations they are buying properties that they can infill by moving another one or two houses onto the site or adding new tiny homes. Their target price for each additional unit is well under $150k ready to rent. As a package its giving them a great yield so thats where the immediate advantage is. Oh, and yeah, its providing immediate capital gain of the property to leverage further if they wish.
I suspect that unlike you, they see property investment (and home ownership) as long term and cyclic. These guys have owned some of their properties for over ten years and have seen both considerable increases in rent so still giving them great yileds on their initial investment . . . and even with the current market they still stand to make considerable tax free capital gains should they decide to sell those properties
Oh don't worry, I know exactly what they are doing in suburbs like Otara like this crap:
https://www.trademe.co.nz/a/property/residential/rent/auckland/manukau-…
https://www.trademe.co.nz/a/property/new-homes/new-house/auckland/manuk…
The issue is that filling properties with tenants is becoming difficult and the extortionate rates they are trying to charge (Where WINZ picks up the tab) are harder to achieve as a result of so many rental properties on the market. Add that the capital gains they had in the past are evaporating or much smaller in recent years (or are paper only as the prices are not realistic), even after cramming two or three extra cookie cutters onto the plot. The lemon is juiced and there is fewer and fewer ways to get more out of it - particularly out of reach for most others other than very capital heavy investors.
Property is cyclical but the cycle is absolutely tapped out. Wait a bit and get a few more boxes in at a lower floor.
Toye
Now my acquaintances will be laughing at your naivety.
A term you don't often hear about is "niche tenant." Before investing astute property investors consider what is their niche tenant is and currently there is considerable demand for those many struggling to find any rental property . . . and that group is very specific and supported by accommodation supplements. I'm sure that the curent Government would love to hear that such tenants are now hard to find and that there is no longer a rental shortage for this group.
Just on "niche tenants"; when I owned rentals my niche properties and tenants were either solo mothers (they are going to be long term due to reluctance to change their child's school or separate them from their friends) or recently married couples (who may be only for a year or two until they bought their own home but they were great tenants being over parties and had dual incomes). These niche tenants were less demanding in terms of time and hassles when working full time while owning investment properties.
Well aware of how this works hence my comment about WINZ picking up the tab. The issue is even those niche tenants have more choice as more "typical" mum and dad investors are desperate to fill their rentals with anybody as the mortgage bleeds them.
Without giving too much information one of the people that does exactly what you said is in financial difficulty and having issues offloading some said cookie cutters.
I also wouldn't bank on the accomodation supplement staying in its current form by the end of this term.
Adding a house to a site is not really property investment, its property development. This will always be profitable if you know what you are doing , but is beyond the ability of most ma and pa invester, and impossible on already developed shitbox sites....
Toye, what do you really get out of writing about housing being such a bad investment?
If it does make you feel better then you should be jumping up and down with joy?
The reality for many of us is quite the opposite,
We have absolutely no problem having fully tenanted properties, we have next to no damage and we continue to make good money while we sleep each and every night!
The fact that you are not an investor or speculator does not really give you any insight or able to comment about it with any accuracy!
Wow, someone got triggered.
Who said I am not an investor?
In saying so, being an investor or speculator does not mean you know what you are talking about - look at the amount of drivel that comes out on here - read some of your posts.
Property is a terrible investment, right now, and if that triggers you and other spruikers on here, so be it.
Toye, why do you spend so much of your time trying to tell others that property investment is bad ?
Pot.. Kettle?
OK, let me rephrase my question:
Why do you spend so much of your time trying to tell others that something is bad in a field you're not involved in ?
I'm posting on a subject I have experience in, and that directly affects my life (property), but I wouldn't waste my time posting on a cooking site, to tell others what food is bad, because I know I'm not a great cook.
Why do you make assumptions about what "field" somebody is in? Do you know how many properties I own? 1? 5? 16? 0?
Having an investment property does not make you an expert in the area either. Just like working at a Mcdonalds for 10 years doesn't mean you are Gordon Ramsey.
Having one or more investment properties does not mean that you have to be morally bankrupt either, though unfortunately it is the common theme here.
how many different ways can you dance around a question, almost like you're avoiding it.
Toye loves the idea of people drowning in debt for some reason, it helps him sleep or makes him feel better about his situation.
If you are what you say and have multiple without mortgages and you want house prices to crash, why don't you live by your own example and sell them at a discount and start the trend?
I'm avoiding doxing myself? Oh no, I am such an idiot.
Since you already did a story on where you are at, I can confirm I am definitely doing better than you if that helps?
What is wrong with wanting house prices to be at more normalised levels even if it technically makes my finances worse on paper? Is it bad for our children and other young adults to be able to make a life in New Zealand and not leave for elsewhere? Are you so obtuse that you think being greedy is the default if you have assets in life?
"If you are what you say and have multiple without mortgages and you want house prices to crash, why don't you live by your own example and sell them at a discount and start the trend?"
And the dumbest comment of the day award goes to...
I was only asking why you keep avoiding this question.
Toye, why do you spend so much of your time trying to tell others that property investment is bad ?
That fact you get soooo defensive when questioned makes me doubt what you say.
Because if a young FHB reading the article scrolls down the first thing they will see is that there is no reason to rush and push up the market and ruin their and many other lives like many did in 2021.
Speaking of ruining lives - why do you seem to appear every time I put anything up?
Oh wait I know. Its because you already made your bed and now you have to lie in it while screaming that it is a lot more comfortable than other people think.
Ohhh, someone got triggered.
I don't think that's what a fhb will see here. They will see do not buy a house or we will ridicule you.
I'm very comfortable in the bed I have made and will be more comfortable when I refix for 2% lower
"I can confirm I am definitely doing better than you"
Yet, you cannot afford to pay Interest $10 per month...
Property is not a terrible investment at the moment for me.
We are receiving good rent each and every week.
We are hands on landlords and know how to continue to be very profitable and we have the flexibility to do what we want when we want.
Investing is not just about buying oroperty and renting it out, there are other avenues that are currently profitable.
🤢🤢
Yep. I'm looking forward to these unscrupulous individuals, who see themselves as model altruists rapidly coming unstuck.
I also look forward to their pocket holding internet friends losing their voice as well.
Note to 'printer' the youth of New Zealand find your crowing about the success of your tyrannical mates quite abhorrent.
Adding the improvements you've mentioned isn't a capital gain; it's a capital injection. It might be owners' capital, it might be debt funded, but I seriously doubt it would translate into 'immediate capital gain', esp in a market that's very flat, or in Wellington's case, still in decline.
Measuring 'yileds on initial investment' isn't how it's done. Rent, like interest, is a charge for using someone else's capital. The capital value isn't stuck at what was paid when the asset was acquired; it's volatile. As most people have seen since 2021; it's fallen a lot.
Yada yada ya
"Who in their right mind would buy an investment property right now"
Investors who know how to create value. Those who do not will indeed lose money.
I know we all love a good anecdote, but I’m noticing “For Rent” signs popping up and staying up for weeks. No longer a rare sight, so many options now.
Long live the humble anecdote!
TTP
An anecdote translates into cold hard cash, when you’re the one looking for a rental.
Interesting to see that renters are watching the investor facebook groups and learning that they can bid for lower rents.
The hidden hand of the market seeking information on a fair price, seems good to me.
Christchurch rents (other than the Man's rentals) must be falling big time. The Man has raised his rents consistently and is getting better rents than average (each month?).
Must mean all the other properties in Christchurch are falling to make up for his rises.
🤔
That guy talks the talk. But does not walk the walk.
Not sure what you base that on Brocky?
Always doing the walking almost fast walking in fact.
For some reason I always picture your comments as written by two children in a large coat pretending to be a landlord.
You are like the powerdownkiwi of Christchurch property spruiking.
Rents down while ownership of that rental is up..
Sums up the picture when it comes to house ownership
FYI the rents have plateaued as expected because National have removed Labours rediculous anti landlord policies.
no they've plateaued because of the huge slug of new builds coming online, recent buyers renting out more rooms because of interest rates, and less cash for renters to go around trying to bid up prices
LOL
Renting is far from ideal for most people, DGM, especially as they grow older and start contemplating their retirement years.
The sooner you own the roof over your head, the better off you'll be in the longer term - both financially and in terms of personal wellbeing.
TTP
you will own the roof over your head sooner
if you buy it cheaper....
Common sense, simple common sense.
"Landlords lament" lolz
I'm lamenting all the way to Palm Beach on Waiheke! 🥂🌴
Only problem is my little Palm Beach wineshop man only opens 5 days a week now! 🥂🌴
I love those alcoholic boomer vibes. Great work!
Ask for a rent reduction. Landlords are getting desperate.
https://www.reddit.com/r/newzealand/comments/1icrgnc/ask_for_a_rent_reduction_landlords_are_getting/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button
Landlord Tried to Raise My Rent…
https://www.reddit.com/r/newzealand/comments/1inm4q3/landlord_tried_to_raise_my_rent_but_i_unoreversed/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button
More Property Speculators struggling to find tenants
https://www.reddit.com/r/newzealand/comments/1ioedbf/more_property_speculators_struggling_to_find/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button
Personally i think this is great news - make interest tax deductable and rents go down - good work co-alition govt
Nothing to do with the significantly reduced demand over the last year.
Though I don't believe as many will exit stage left this coming year.
Yep. Capital gain chasers now have a two year tax free pillow to exit . If there is no future capital gain train on the horizon why stay, cos without cap gains...what is the point.
How about changing the lending model og residential as a business to match commercial property. They all say it's a business after all, therfore 50% equity required and max 15 year loans should apply. That would significantly constrain the exploiters this sector has attracted.
Because a business can go broke with nothing left in the pot to sell for the bank to get their money back however, a house is basically owned by the bank until it's paid off. It's called risk assessment.
I'm pleased the interest deduction is being phased back; it was always unprincipled IMO, but I think you give National too much credit. A recessionary environment and change in migration patterns is influencing rents. It's just fortunate that lower interest rates will help investors manage price creep with rates and insurance.
And looking at recent polls; how long do you think a Labour / Green / Maori Party Govt (shudder) would take to remove interest deductibility? I'd say they'd do it straight after the election in a mini budget AND it wouldn't be phased.
Not just that, but they will immediately whack a 5% a year wealth tax on the value of your property. Because that will be the price for buying the Greens and TPM. Followed shortly thereafter by the Aotearoa Expropriation Act
Hahahahaha the fear is strong with this one.
Wants others to pay the taxes so he doesn't have to. Yells "communism!" at any other possibility.
Wealth tax is a desperate attempt to make the economy even more unproductive, especially when they give it away to people for nothing.
Precisely - we need to stop taxing our high achievers' work and transferring that money to subsidise and bail out unproductive property speculation at every turn.
Better to reduce income tax on the productive and raise LVT on unimproved land value while liberalising zoning. Reward the value makers not the value takers.
Would we have one of the highest minimum wages in the world if unproductive speculation wasn't putting huge upwards pressure on living costs as "landlords" try to pass on as much of the reckless borrowing they've taken on?
Imagine if real productive businesses weren't constantly having to adjust their biggest expense item in line with "living costs".
Not many in the comments celebrating the soft rental market, old news at this point. Seems like the spruikers outnumber us, worried about their only income stream now that capital gains aren’t a sure thing anymore.
Well, Interest is a financial site, dedicated to money and investment.
Wellington CVs are out now I think.
There's a bit of shock and awe on various platforms
Down 35-40% in real terms?
Anyone shocked and/or awed must have believed the ridiculous hype of the 2021 RVs and not bothered to keep an eye on the bigger picture. I'd guessed our new Wellington RV within 1 percent. It's much closer to a realistic figure now, although I still see more downside.
Prospective tenants are definitely thinner on the ground this year (more anecdata, sorry), although we have listed a little later this time round and are on the back end of the annual Jan/Feb bubble. FWIW we're asking the same rent as the past two years. Our finances are secure so it's not a concern for us, but I can see how less experienced landlords would be panicking.
Has Homes been updated to reflect new CVs, I don't follow Wellington.
I just checked and yes it has.
So why don't you use the Stats data which says rents have gone up 4%?
Where do Stats get their data from?
bonds registered?
So more supply works? Who'd have thought, ay?
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