The rental housing market continues to move in tenants' favour with the supply of homes for rent increasing while asking rents decline.
According to Trade Me Property, the number of properties available for rent on the website was up 6.3% in September from September last year, while the median advertised rent was down 1.6% over the same period.
Demand from prospective tenants was also in decline, with rental property searches on Trade Me Property down 1.0%.
Trade Me Property spokesperson Casey Wilde said the increase in the number of rental properties becoming available was putting downward pressure on rents.
The biggest annual decline in rents was in the Wellington region, where September's median advertised rent on Trade Me Property was down 7.0%, followed by Northland -6.5%, Marlborough -3.4% and Hawke's Bay -3.1%
Canterbury was the only region where advertised rents were up year-on-year, with a 1.8% increase.
September data was not available for Gisborne or the West Coast . See the chart below for regional rents and their annual change.
"This increased supply, combined with the marginal overall drop in national searches, suggests the balance of power favours tenants across the motu," Trade Me Property's September rent report said.
The comment stream on this article is now closed.
11 Comments
This has got to be helping inflation ... right?
Yet, yesterday's CPI article stated that rising rents were one of the top 3 contributors to the CPI. Go figure.
I saw that as well, but the cpi is probably from a year ago given stats nz time lag
Yes that was interesting, but they only had rent up 2.6% which is a fall in real terms with CPI being 3%...if rent was excluded, presumably inflation would be higher.
Doesn't explain the discrepancy though.
Good news because it's not all about interest rates falling to get the economy moving. Let's not forget that renters have spending power when they're not being throttled by rising rents.
statistically given there are more renters than owners in NZ, this should stimulate the economy more than OCR cuts right? Who;d have thought that reversing the rental stranglehold on people and allowing them to live spending a more reasonable amoun on shelter, will be good for society.
Let's not forget that renters have spending power when they're not being throttled by rising rents.
This is true. But where will the splash their savings? On the store brands or all the nice-to-haves at the deli or the craft beer aisle?
My reckon is that the relationship between the Ponzi and spending like a drunken sailor is even negatively affected when the property mkt is flat.
Oh no. How will speculords cope if they can't put up rent all the time?
Who says they can't jack the rents? Put in bunk beds and capture the South Asian migrant mkt.
Win win, right?
Hutt valley - Im one of them, moved short distance recently,saved 30 a week but nicer living eg actual dining room, lounge and bedrooms double the size. It was diabolical 2.5yrs ago it was like a horde trying to sign up on the spot 3min into viewings.
Welcome to living good sir. Glad to hear things are looking up for you :D
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.