The availability of rental properties may be much closer to tenant demand in Auckland, but there are likely to be significant shortages of rental properties in many other areas.
The latest figures from Tenancy Services show the national median rent was $540 per week in July, up $40 per week (+8%) from July last year.
This is based on bonds received for new rentals in July, making it a peak figure as new rentals set the market rate and most landlords typically reset rents to the current market rate when they need to be revised.
However, there were significant regional differences in rental growth around New Zealand.
In the Auckland region, which is by far the largest rental housing market in the country and also the most expensive, the median rent was $590 per week in July.
This has only increased by $10 a week (+1.7%) compared to July 2021, meaning that in dollar terms, Auckland’s median rent has increased by a quarter of the national median over the course of of the year until July 2022.
In percentage terms, Auckland’s 12-month increase was the second lowest in the country.
Only the Tasman region, which posted a decline of 1%, saw a lower rate of change.
In the rest of New Zealand, the only other region with an annual increase of less than 5% was Northland at 4.2%, with annual rent increases in the rest of the country ranging from 5.6% to 12, 9%, with five regions – Bay of Plenty, Gisborne, Taranaki, Manawatu-Whanganui and West Coast showing double-digit annual percentage increases.
The table below shows both the median rent and the number of bonds received in each region in July, as well as the percentage change in both compared to July last year.
It is significant that several areas – Bay of Plenty, Gisborne, Hawke’s Bay, Taranaki, West Coast, Canterbury and Otago – saw substantial increases in their median rents in July compared to the previous year, while posting significant decreases the number of bonds. received over the same period.
This suggests that rental markets could be particularly tight in these regions, with a shortfall in the number of properties available to rent compared to rental demand from tenants.
However, supply and demand are likely to be more balanced in Auckland, where the number of bonds received in July increased by 4.2% compared to July last year, with a much more modest increase 1.7% of rents.
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