Residential rents have been largely stable for almost three years now

There was a drop in the number of residential properties newly tenanted in August but rents continue to flatline.

Tenancy Services received 13,215 bonds for newly tenanted properties from throughout the country in August, down 13% from July, and down 4% compared to August last year.

However, while fewer properties found new tenants in August, the rents charged remained largely unchanged. The national median rent on newly tenanted properties was $595 a week. That's up $5 a week compared to July, unchanged from June, down $5 a week compared to May, and unchanged from August last year.

The national median rent has bounced around between $590 and $600 a week since December 2023, so essentially its has been unchanged for almost three years.

However, the number of properties newly tenanted in August rose to 13,215 in August this year from 10,947 in August 2023, a 21% increase.

The fact that there has been a strong increase in the number of properties being tenanted while rents have remained essentially flat, suggests there is an ample supply of rental stock on the market with no upward pressure on rents.

The August data showed the same monthly trend of a drop in the number of newly tenanted properties for the month while rents remained flat in all of the main urban centres, including Auckland, Waikato, Bay of Plenty, Wellington, Canterbury and Otago, although Otago's monthly figures can be unusually volatile compared to the rest of the country.