Tough time for renters as median weekly rent increases by 7% year-on-year

Tuesday, 26 April 2022

As cities like Wellington wrestle with the demands for more intensive housing, a central design office could lead the way.

The national median weekly rent jumped 7% year-on-year to reach $575 in March, nearly matching the record-high annual inflation growth, Trade Me’s latest Rental Price Index shows.

Trade Me Property sales director Gavin Lloyd said the increase would be hard news for renters, who were already feeling the effects of inflation, which hit a 30-year high of 6.9% in March quarter.

“It’s not an easy time to be a renter as Kiwis are having to fork out significantly more for everyday items across the board, including housing costs.”

Deputy Prime Minister and Finance Minister Grant Robertson sat down with Stuff to talk inflation, the budget and why Labour is sticking to its guns on long-term spending. (Video first published April 24, 2022)

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In Bay of Plenty the median weekly rent was up 9% year-on-year to record high $600.

“The Manawatū/Whanganui median weekly rent also fell into a new bracket at $500 for the first time marking a whopping 14% year-on-year increase,” Lloyd said.

“The only other region to see a record in March was Waikato, where the median weekly rent reached $520, up 7% year-on-year.”

Trade Me Property sales director Gavin Lloyd says home buyers are now in the driver's seat.

The largest rise in median weekly rent was seen in Taranaki, up 18% year-on-year to $530.

Porirua remained the most expensive place to rent with median weekly rent of $670 a week.

In Auckland the median weekly rent increased by 3% year-on-year to $610 in March, matching the previous record-high in January.

Central Auckland rents were up up 5% to $590 a week.

North Shore, Rodney, and Papakura were the most expensive areas at $650.

However, the national median weekly rent had not changed from February to March.

“Tenants will be somewhat relieved to hear that more recently rents have remained stagnant. However, time will tell whether this continues as we head into the cooler months,” Lloyd said.

The national supply of rental properties dropped 6% in March compared to the same time last year.

Most regions had fewer rental listings last month than in March last year, with the biggest drops in Nelson/Tasman (down 39%), Canterbury (down 33%), and Otago (down 23%).

Wellington and Auckland flouted the trend. The capital had a 7% year-on-year increase in supply, while Auckland was up 2%.

There were also fewer prospective tenants last month compared to March last year, with nationwide demand falling by 7% year-on-year.