Auckland's median rent hits $600 for the first time

Friday, 19 November 2021

Auckland’s median advertised rent passed $600 a week for the first time.

Auckland’s median advertised weekly rent cracked $600 for the first time in October, increasing by 5 per cent when compared with the same month last year, Trade Me’s latest Rental Price Index shows.

Trade Me property sales director Gavin Lloyd said rents in the Auckland region had been edging closer to the $600 mark since the beginning of the year.

“We saw the region’s median weekly rent stagnant at $590 from January right through to June, before it climbed to $595 in July where it sat tight right up until last month.”

Lloyd said the increase would come as tough news for Auckland renters who had faced a difficult second half of the year with extended lockdowns.

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Access to the income-related rental subsidy (IRRS) would mean council housing tenants pay no more than 25 per cent of their income on rent - an amount that would be hundreds of dollars cheaper for some.

“It’s likely the price increase comes down to pent-up demand, after alert level 4 brought the market to a halt in August. As soon as the rules were eased last month, many Auckland renters were keen to get a move on and we saw rental market activity spike.”

Lloyd said the most expensive Auckland district was North Shore City ($650), followed by Rodney ($640), and Papakura ($625) last month.

Trade Me Property sales director Gavin Lloyd says median rents hit all-time highs in October.

“Auckland City and Waitakere City were the only two districts with median weekly rents less than $600 in the region, both sitting at $595.”

Demand in the Auckland region was down by 4 per cent year-on-year in October, and supply was down four per cent, he said.

National rents also hit new highs, with the median weekly rent on the site reaching a new high of $560 in October, increased by 8 per cent year-on-year.

“Around the country we saw a 3 per cent increase in demand for rentals last month when compared with October last year,” he said.

The number of rental on the market dipped last moth when compared to the same time last year. Supply was down 7 per cent nationwide and the biggest drops were seen in Nelson/Tasman (-41per cent), Bay of Plenty (-27 per cent) and Canterbury (-25 per cent).

Lloyd said rental prices were likely to continue to increase in the summer months, which tended to be the time of year that there was most activity in the market.

“Unfortunately for rents, we may well see prices climb even higher yet before the year is over.”

Wellington rents hit $620 in October, a new high for the capital, and an 11 per cent increase compared to the same time last year.

Central Wellington median rents hit $645 last month, making it one of the most expensive districts in the region, along with Porirua ($650) and Upper Hutt ($610).

Demand in Wellington region was up 13 per cent last month when compared to the same time last year, but supply was down by 5 per cent.

“The most popular rental in the region last month was a three-bedroom apartment on Normanby Street, Newtown, for $650 a week. The property received 92 enquiries in its first two days onsite,” Lloyd said.