The rental housing pendulum swung further in tenants' favour in November, with the number of properties becoming available to rent hitting a record high while asking rents continued to decline.
Property website Realestate.co.nz received 7253 new rental listings in November, which was up 12.4% on November last year and was also the highest number of new rental listings the website has ever received in any month of the year.
While the number of properties available to rent has surged, their asking rents have headed in the opposite direction.
The national average asking rent for properties advertised on Realestate.co.nz has declined for four consecutive months, from $638 a week in July to $626 in November, a drop of $12 a week (-1.9%).
Compared to November, last year, the national average rent has declined by $20 a week (-3.1%) and is now $34 a week (-5.2%) lower than the peak of $660 a week in May 2024.
The biggest decline in asking rents in November was in the Wairarapa in the lower North Island, where the average asking rent declined from $566 in October to $522 in November, a drop of $44 a week (-7.8%) for the month, suggesting Santa could have arrived early for some renters this year.
5 Comments
Oh the debt farming humanity. Smells of unsold developments giving up on saelling, and bringing the unsold stock to the rental pool to try and get some crashflow. Then it's not new anymore.
The question is when to the banks start shooting?
Landlords will need to slice thick bread... for the sandwich filling is not ham
Blessed is the Landlord who persists with this venture for the primary focus of providing a precious and essential public service for the long term (funnily, all will say they do).
Absent capital gains, skyrocketing rates, insurance and a now a tenants market, it's hard to envisage the near term return of a sellers market whilst rents are in full decline. Some won't be bothered by this latest symptom of the great reset. Some certainly will be.....
They are all would be Saints
Can also see its possible interest rates also going back up again next year, then Labour government elected which again reverses interest deduction rules - while economy continues to stagnate, with persistently high inflation, with low migration, with an aging population trying to downsize and offload properties.
But 'be quick' to secure a bargain before you miss out on this cycle and you're priced out of the market until 2030.
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