Regional rents continue to head north at a strong rate
Rental prices continue their surge toward summer as nationwide median weekly rent rose 4.2% on last year to $500 in November, according to Trade Me’s latest report.
Trade Me’s Rental Price Index found that the number of available rental properties was fairly flat compared to last year, but demand increased 17%.
“The pace of rent growth across the country will be alarming for a lot of tenants and the trend we’re seeing now suggests the peak season in summer is going to deliver some new price records,” Aaron Clancy, sales director at Trade Me, said. “Demand for rentals has increased enormously year-on-year and until there’s a spike in supply high rents will be the new normal.”
Read more: Report reveals rising rents in Wellington
Clancy said regional rents continue to head north at a strong rate, reflecting an ongoing rise in property prices that is keeping people in the rental market.
“If you exclude Auckland from the picture, the nationwide median rent rose 7.1 per cent compared to November 2018 and we’ve been seeing some strong monthly numbers in the regions that often align with property prices rising,” he said.
“While Auckland is still the most expensive region to rent, the median weekly rent in Wellington registered a solid 10 per cent jump, or $50 per week, on last year to $550 and it wouldn’t be surprising to see it take out top spot in the coming months,” he continued. “Unsurprisingly, Wellington was also home to the most popular rental property across New Zealand in November. A two-bedroom house in Brooklyn took out the top spot, going for $395 a week, had 81 enquiries in the first two days onsite.”
