Record high for NZ weekly rents
Any shortage of supply drives prices up. It’s the iron laws of supply and demand. Think gold, diamonds or good service at your local. According to the latest Trade Me Rental Price Index, the current shortfall in rentable properties is doing just that to New Zealand’s rents. Plus, the demand has been driven up by punters eager to secure digs before the summer rush. Over the last year, the national median weekly rent has risen by 6.6% to a record $480.
"We've seen a 3% drop year-on-year in rental properties across the country, and after last summer's madness some tenants are making a move now to avoid risking a costlier rental in summer," explains Aaron Clancy, Trade Me's head of rentals.
The median rent outside NZ’s three major cities has risen 10.5% to $420—a record for August. Hawke's Bay renters have endured the biggest hike over the past year, up 13.9% to $410. A closer look reveals:
- Auckland up 3.8% to $550
- Waikato up 7.8% in to $415
- Otago up 9.8% $450
If you’re thinking that now is the time to buy with rental prices moving on up, talk to your Loan Market adviser who can help you nut out what’s possible.