The national median weekly rent increased by 5.3 per cent to $495 per week, compared to February last year according to Trade Me’s Rental Property Index. Record rents and incredible demand can still be seen in many areas across the country, particularly those with a large student population.
January and February are traditionally considered fairly hectic months as a lot of tenancies come up for renewal and students start to flood into town with the hope of securing a rental property before the university year kicks off.
While the Wellington market has been experiencing some significant growth over the last six months, with supply not meeting demand, the rental market actually dipped slightly in February. The median weekly rent in the Wellington region was up 8.2% year-on-year to $530, down from January’s record high of $550 per week.
Although the market has settled slightly, there are still plenty of tenants looking for properties. Trade Me saw 17 per cent more enquiries for Wellington rental properties in February this year compared to last year. The three most popular rentals in Wellington were in Stokes Valley, Naenae, and Taita. Large houses have soared in popularity in Wellington too, with a jump of 24.2 per cent to $1,180 per week.
In Hawke’s Bay, overall rental prices have increased by 10.4% compared to February last year.
There are a number of factors which have created this demand - these include first home buyers staying in rentals longer as saving a deposit is harder, and the fact that in many parts of the country there simply aren’t enough houses. The recent Healthy Homes Standards announcement is likely to see more record highs this year.
Note: Trade Me’s Rental Property Index is produced from Trade Me Property data of properties that have been rented during the month by property managers and private landlords.
