Rental market begins to cool
The rental market is starting to show signs of cooling, according to Trade Me’s latest rental price index.
The national median weekly rent remained unchanged for the second consecutive month in April, Trade Me Property sales director Gavin Lloyd said.
April’s median rent, of $540 a week, was up 4 per cent on the same time last year, however, price growth had slowed since the Government’s new housing policy was announced, Lloyd said.
‘‘In April we also saw demand for rentals fall 17 per cent nationwide when compared to March, with every region experiencing an annual drop in demand apart from Gisborne and West Coast,’’ he said. ‘‘This will come as welcome news for tenants and could help to alleviate some pressure on the market.’’
Since 2016, rents have increased 23 per cent, according to Trade Me’s data.
The number of homes available for rent in April was also down 9 per cent on March, pointing to the fact that more renters were staying put in the competitive market, he said.
The rental market was expected to continue to slow, he said. ‘‘The winter months are typically much quieter with everyone hunkering down in the cold, and that coupled with the new string of government initiatives designed to take the heat out of the market, may mean we see prices head south.’’
Auckland’s stagnant rental market and falling demand was a good indicator for where the country could be heading over the next few months, Lloyd said.
In the Auckland region, the median weekly rent in April was $590 for the fourth month in a row while demand fell 17 per cent on March, according to the data.
Supply also fell 7 per cent month on month.
The most expensive districts in the Auckland region for rental properties were Papakura, with a median rent of $630, North Shore City, at $625, and Waiheke, at $625.
In contrast to Auckland, the median weekly rent in the Wellington region increased by $5 to reach $595 in April.
This put last month’s median weekly rent just $20 shy of the region’s all-time high of $615, recorded in January.
The rest of the country was a mixed bag for renters, he said.
Canterbury ($450), Taranaki
($460), and Waikato ($495) all reached record highs in April while Bay of Plenty and Southland followed Auckland’s footsteps with no change in April compared with March.