Rental stock falls 7% nationally as most regions record rent rises
New Zealand’s two largest rental markets are tightening, with fewer listings in Auckland and Wellington as asking rents edge higher across much of the country.
The number of rentals on the market fell 7.0% year on year to 7,811 in October, according to realestate.co.nz. Auckland and Wellington, which together account for just over half of the country’s rental listings, drove most of the fall. Stock dropped 13.0% in Auckland to 3,313 and 13.2% in Wellington to 791.
Over the same period, the national average asking rent rose 1.0% to $634 a week. Rents increased in 11 of 19 regions, held steady in three and fell in five.
realestate.co.nz chief executive Sarah Wood (pictured) described the shift as a straightforward supply-and-demand story but cautioned against reading too much into it.
“It’s too early to call it a trend, but if supply stays tight, renters could expect more competition for good properties over summer,” she said.
Trade Me data also points to rising demand, with tenant searches per listing up 20% year on year in September.
Landlords appear to be preparing for firmer conditions. A net 54% of investors surveyed by The Property Consortium and economist Tony Alexander in October said they plan to lift rents over the next 12 months, up from 46% a month earlier.
Main centres see modest gains
Rent rises in the biggest cities were small. Auckland rents rose 1.3% to $692 a week, Wellington’s rose 1.5% to $643, and Canterbury’s rose 1.3% to $594.
“Renters in Auckland and Wellington are still paying less on average than two years ago, but with fewer rentals around, this could start to change,” Wood said.
New listings data suggests renters in both cities may need to move faster. Auckland recorded 223 fewer new rentals than a year earlier, a 7.7% fall to 2,678. In Wellington, new listings were almost unchanged, but total stock fell sharply. realestate.co.nz said this suggests properties may be tenanted more quickly.
Nationally, new rental listings fell 3.3% to 6,525, although 11 regions recorded increases. Canterbury had the largest rise in numbers, up 7.8% to 869.
Record high in Southland
Southland rents reached $511 a week, the highest level since realestate.co.nz began keeping records in 2016. Rental stock in the region was down 16.9% on last year.
Central Otago/Lakes District remains the most expensive region to rent in, with rents up 10.9% to $885.
More choice in some regions
The picture was very different elsewhere. Stock rose in nine regions, led by Hawke’s Bay (up 38.7%), Wairarapa (up 20.0%) and Bay of Plenty (up 19.8%). Rents fell in five regions, with the biggest drop in Wairarapa, down 6.3% to $521 a week.
“Your experience as a renter in this market depends on where you live,” Wood said.
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