Ben O'Connell
New Zealand’s national rental prices have hit an all-time high. Trade Me’s latest Rental Price Index has revealed that the national median rent jumped to a record-breaking $650 in March, up 8.3 percent from March 2023.
“On average, rents have increased by about 6 percent annually,” says Trade Me’s Property Sales Director Gavin Lloyd. “While it’s not the biggest annual increase we’ve ever seen, it is unusual to see it this high in March. We’d normally expect to see the market cool slightly as we exit summer and start heading into the colder months.
“Renters are now having to fork out $50 a week more on average than they were in March 2023. That’s an extra $2,600 a year which will no doubt be putting pressure on Kiwi who are already doing it tough.”
The Manawatū/Whanganui region saw the greatest regional increase, up 10 percent to $550 in March 2023, while the Wellington region saw no change, remaining at $650.
Apartments, townhouses and units are highly demanded nationwide. Together, rent for these properties increased to a record-breaking average of $580 per week in March, 8.4 percent more than the same time last year.
Surprisingly, prices are growing faster outside of the main city centres, with a 10 percent growth to a record $550 when Auckland is excluded.
Gavin Lloyd says this shows that more New Zealanders in more places are starting to embrace urban lifestyles and are happy to trade a bit of space for a great location. He continues that the rising cost of living has changed the way many people think about moving around our cities. Despite townhouse rents generally being slightly higher, Lloyd said that their convenience can sometimes offset the extra rent.
In Pōneke Wellington, the average rent for townhouses jumped 9 percent compared with March last year – despite the capital seeing no change in overall rents across the same period.
Further south, Ōtautahi Christchurch was seeing a notable jump in price for units, reaching a record $460, up 9.5 per cent. Apartments were up as well, at a record high of $525. “Throughout the rebuild of Christchurch, the city has really embraced more compact urban living,” he said.
“Apartments and townhouses tend to be near good quality public transport, if not within walking distance of places people want to get to. If that means you can leave your car at home a few days a week, it can make a big difference to the wallet,” he said.