But some regions dip
The median rental price across New Zealand remained steady at $650 in April, according to Trade Me’s latest Rental Price Index, marking the sixth time in the past year that rents have remained flat month to month.
“Rents have been running hot, rising faster than inflation and wage growth unfortunately hasn’t kept pace,” said Gavin Lloyd (pictured above), Trade Me property sales director.
This stability, Lloyd said, is a welcome change for tenants.
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Supply and demand shifts
An 8% increase in supply and an 8% decrease in demand from March to April contributed to the stability.
“April marks the fourth consecutive month where supply has increased, and the third consecutive month where demand has fallen. It looks like the market is rebalancing,” Lloyd said.
Regional variations
Many regions experienced slight dips in rental prices.
Nelson/Tasman saw the most significant drop, with median rent falling 3.4% to $570.
Auckland, Northland, Hawkes Bay, and Manawatū/Whanganui also saw decreases ranging from 1.4% to 1.8%, while Canterbury and Southland rents remained unchanged.
Conversely, Bay of Plenty, Waikato, Taranaki, Wellington, and Otago experienced modest increases between 0.7% and 3.2%, Trade Me figures showed.
Lloyd noted that while it's not unusual to see prices stagnate or dip heading into the colder months, this trend demonstrates that demand is still outpacing supply in some regions.
"It is typical for demand to taper off heading into winter, but this year it does appear that supply still has some catching up to do in some regions which is why we're seeing a bit of inconsistency with rents across the motu," he said.
Bay of Plenty remains the most expensive region to rent in, with median rents reaching $690, Trade Me reported.
“While we've certainly seen sharper rent hikes in the past, this comes at a time when rents are already at record highs,” Lloyd said.
For the complete report, click here. Compare the latest figures from the previous report.
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