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Auckland rents at a standstill
Monday, 24 October 2022
Auckland’s median weekly rent for residential property has not moved in six months, while the number of rentals has skyrocketed.
Median rent remains at $600 a week, marking an increase of 1% year-on-year and is now $10 below the March record-high.
Following Auckland’s lead, Wellington’s median weekly rent of $600 has stayed at that level for the second month in a row, Trade Me data show.
Across the country, more rentals were listed on Trade Me than any September on record, with a 31% year-on-year jump. “Pre-pandemic, in September 2019, there was just a 7% jump in rental market supply.
In Auckland, the number of rentals listed rose 51% year-on-year, the biggest increase in all regions. Wellington was not far behind with supply spiking 49%. Trade Me property sales director Gavin Lloyd says more options for renters are reflected in the both region’s stagnant rent prices.
National rents
Despite stagnant rent growth in Auckland and Wellington, the national median weekly rent across the country rose by 7.5% year-on-year last month, slightly north of the 7.3% annual inflation rate for the September quarter.
The national median rent is $575 - $40 higher than the same month last year, which no doubt renters will feel in their back pockets alongside other cost-of-living increases, says Lloyd.
He says the national median weekly rent has shown slight fluctuations, but remained comfortably in the $570-$580 bracket since January this year. When comparing last month’s figure with August, it actually fell by 1% or $5."
“While this marks a slight drop, there is no denying it’s tough as living expenses are going up across the board and rents are no exception,” says Lloyd.
The biggest year-on-year median weekly rent increases last year were in Southland at 14%, and Otago at 10%. Canterbury was at 9%, Manawatū/Whanganui at 9%, and Taranaki at 8% were not far behind.
Wellington and Hawke’s Bay were the only regions to see no change in median weekly rent last month when compared with the same month last year. “This will be a relief for tenants in these regions, where rents have exploded in recent years.”
In the past five years, Lloyd says the median weekly rent has skyrocketed by 51% in Hawke’s Bay and 33% in Wellington. “This puts both regions ahead of national price growth, with the country’s median weekly rent climbing 28% in five years.”
Demand side
Only Canterbury at -2%, Southland at -4%, Nelson/Tasman at -9% and Otago at-9% had a drop in rental supply in September.
Inquiries on rental properties dropped 5% nationwide last month. “Auckland at 26%, Southland at 11%, and Hawke’s Bay at 7% were the only regions to see a year-on-year increase in demand.
Most expensive
The most expensive Auckland districts in September were North Shore City $650, followed by Papakura $640, and Rodney $635. In the Auckland City district, the median weekly rent was $580 last month.
“The highest median weekly rent in the region was in Porirua $675, followed by Upper Hutt and Wellington City $600.”
Kāpiti Coast district had a standout month in September. The median weekly rent in Kāpiti Coast fell 9% year-on-year to $550 - the first time rents have dropped in the district since July 2019.
